10% CGT qualification

[hgllgh]

thnx crossroads.

can i ask what reason you gave for closing down your company?

will you go perm for now or just not work!!?

[Crossroads]

I didn't give any specific reasons, other than the business (and it's directors) were no longer going to trade.

Had HMRC enquired further, I would have explained:
1. The current share structure no longer fitted with business strategy and two of the three directors wanted out and the remaining director (me) cannot afford to buy them out, therefore solution is to wind up the company.

2. The only current fee-earning employee / director / shareholder (again, me) does not intend to continue in the same trade in the foreseeable future.

After this particular contract I plan to wind up the company and take a long break (like the rest of 2008). At the end of this I may go contracting again, or I may go permie, or I might even go and be an electrician.

[hgllgh]

yeh, you see your reasons are perfectly valid, but if I say i'm going traveling but might want to come back and contract again it sounds like a bit of a grey area! however i think its perfectly valid not to want to administer a dormant company when I'm half way around the globe! (i think you still have to submit 'null' returns etc?)

[Hex]

or I might even go and be an electrician.

Interesting. I have been thinking the same!

[NickNick]

How long a break

Here's a quick question following on from this discussion. In June this year, I'll be taking a break of at least 6 months from work. What is the accumulated wisdom in terms of leaving the company up and running or closing it down and starting a new one next year?

[Crossroads]

yeh, you see your reasons are perfectly valid, but if I say i'm going traveling but might want to come back and contract again it sounds like a bit of a grey area! however i think its perfectly valid not to want to administer a dormant company when I'm half way around the globe! (i think you still have to submit 'null' returns etc?)

Be efficient with the facts. You wish to wind up the company as it no longer intends to trade.

If you "might" want to come back "some time" and maybe contract then it's not exactly set in stone.

You could always ask HMRC for their view.

[Crossroads]

Here's a quick question following on from this discussion. In June this year, I'll be taking a break of at least 6 months from work. What is the accumulated wisdom in terms of leaving the company up and running or closing it down and starting a new one next year?

Probably less hassle to keep it open (bank account, VAT reg etc) unless you need to extract a large amount of capital from it.

[Ruprect]

Be efficient with the facts. You wish to wind up the company as it no longer intends to trade.

Exactly right. You can always change your mind. You were being honest at the time.

[hgllgh]

Be efficient with the facts. You wish to wind up the company as it no longer intends to trade.

If you "might" want to come back "some time" and maybe contract then it's not exactly set in stone.

You could always ask HMRC for their view.

I've sent an email to them so we'll see what they say.

I have trawled the internet as well as hmrc site and their seems to be NO info on this issue. I would have thought that this would be clearly stated otherwise the risk is that loads of contractors (er I mean entrepreneurs) will close their businesses, pay 10%, and start up again!

Surely HMRC realise this and could be using this as a form of entrapment for contractors who chance their arm.

Either way there must be some sort of time limit whereby if a contractor starts up again within this limit HMRC will come knocking. This must be in place now as HMRC will need some kind of system to prevent the abuse mentioned above.