Composite to Ltd

[paullie69]

Hi all

After setting up a business bank account, transferring my LTD from the clutches of the MSC, filling in all the paperwork giving my new accountants authorisation with HMRC, setting up payroll etc ... I have just been informed by my accountant as I'm moving from a composite\MSC arrangement to close down my company and open a new one as she deems it too risky. Would anyone like to comment on this as if so, this would be a MAJOR eff on when I've just started to get things sorted.

Like I said, she has decided to give me this advice about a month and a load of paperwork after the fact which is gonna cost me for domain re-registration, website design etc ....

Your comments would be much appreciated as am sure there are more than me 'legitimising' my operations

Thanks in advance

Paul

[Bluebird]

There should be "no" problem in doing what you are doing.

However if you think like HMRC - if XYZ Ltd was being run by an MSC and is now not what has changed ?

By making a clean break you're remoing any links to the MSC which is probably the best course of action.

You could perservere with the old Ltd co, but then again one of the things you get an accountant for is advice - if you then ignore that advice thats your choice.

I know what I'd do.

[Lewis]

Hi all

After setting up a business bank account, transferring my LTD from the clutches of the MSC, filling in all the paperwork giving my new accountants authorisation with HMRC, setting up payroll etc ... I have just been informed by my accountant as I'm moving from a composite\MSC arrangement to close down my company and open a new one as she deems it too risky. Would anyone like to comment on this as if so, this would be a MAJOR eff on when I've just started to get things sorted.

Like I said, she has decided to give me this advice about a month and a load of paperwork after the fact which is gonna cost me for domain re-registration, website design etc ....

Your comments would be much appreciated as am sure there are more than me 'legitimising' my operations

Thanks in advance

Paul

I'm not a professional, but as long as you haven't had any dealings with an MSC this financial year I can't see how this would be a problem. This point has been raised before on here and most people seem think it won't increase chances of investigation.

I spoke to my tax insurance helpline as I am in a similar situation and they thought it was fine. Remember you can't 100% avoid an investigation anyway bacause a lot are random! Get tax investigation insurance from PCG, QDOS etc.. that'll put you mind at rest.

[paullie69]

Hi Bluebird

Thanks for that, until recent legislation MSCs have been fine.

We are re-structuring our company to meet the legislation so all should be fine I guess. IR35 is a contractual \workin practises issue so I should be ok there hopefully

Thanks for your input

Paul