IR35 re-opening investigations

[ThisAndThat]

Guys, what is the time frame for the revenue people if they decide to re-open a closed IR35 investigation? I think general tax matters are 7 years and my case was fought and won about 6 years back. I've since then lost the details anyway.

Just wondering if they would drag open a case about a small fry like me after all this time in view of the recent wins? I closed the company (with IR permission as you need to do) and basically put it all behind me. The work history I had at the time was with one or 2 big clients for a couple of years then about 4 short contracts (some just a few weeks). Those were mad days in the year 2000 for sure and I would never work that way again.

[KevinS]

Guys, what is the time frame for the revenue people if they decide to re-open a closed IR35 investigation? I think general tax matters are 7 years and my case was fought and won about 6 years back. I've since then lost the details anyway.

Just wondering if they would drag open a case about a small fry like me after all this time in view of the recent wins? I closed the company (with IR permission as you need to do) and basically put it all behind me. The work history I had at the time was with one or 2 big clients for a couple of years then about 4 short contracts (some just a few weeks). Those were mad days in the year 2000 for sure and I would never work that way again.

Considering the company has been closed, the chances are nil..

[ChimpMaster]

Considering the company has been closed, the chances are nil..

Is that true though? I ask because then surely the best strategy of avoiding any company investigations is to run a company for a couple of years and then close it down and start a new one. Surely HMRC wouldn't allow such a flagrant "abuse" of "their" rules?

[TheBigYinJames]

Is that true though? I ask because then surely the best strategy of avoiding any company investigations is to run a company for a couple of years and then close it down and start a new one. Surely HMRC wouldn't allow such a flagrant "abuse" of "their" rules?

HMRD won't let you close it down until your tax affairs are sorted to their satisfaction.

[KevinS]

Is that true though? I ask because then surely the best strategy of avoiding any company investigations is to run a company for a couple of years and then close it down and start a new one. Surely HMRC wouldn't allow such a flagrant "abuse" of "their" rules?

I believe that was part of the reason for the MSC legislation.. There has been some discussion on closing companies and opening new ones..

[DimPrawn]

I've recently closed my old company for this reason (to ditch a long history of contracts).

I would say it is worth starting afresh every few years to bury the past.

[Pickle2]

I've recently closed my old company for this reason (to ditch a long history of contracts).

I would say it is worth starting afresh every few years to bury the past.

Yep, me too. If i can get at my companies hoarded loot using CGT allowance and 10% rate, and can at the same time put behind me a few years of less that great from an IR35 risk pov contracts, then its all upside. I have recently closed one company down, and plan to run this one for approx 3-4 years before doing the same.

[Lockhouse]

OK - Say I've got 200K in the company - can I ESC 16 it, pay 18% on the gross and then just start another one doing the same thing straight away?

[Lewis]

OK - Say I've got 200K in the company - can I ESC 16 it, pay 18% on the gross and then just start another one doing the same thing straight away?

http://www.shout99.com/contractors/s...?id=51990;n=10

There is nothing "illegal" in what your being advised to do, however I would be very cautious in jumping back into contracting soon after closing your company down (which will take some time to finalise) with the same format as your had in your old company.
A capital distribution (which is what your accountant is recommending) is not something that you can do on a regular basis when engaged in the same trade, so be warned.

[Lockhouse]

Thanks - so what's a regular basis? I've been trading for 15 years or so with this company. Could I close it, take a couple of months off and then start again, but plan on doing the same thing again in 4-5 years time - when I'll be retiring?