close company - whats involved

[max]

I've heard that ESC16 (for 10% CGT) can take around 3 months! If that's the case then I am not going to have enough time to close the company down before I leave!


I will be traveling the globe for 5 - 6 months starting in around 3 months.

What's the problem? 3 months after you stop trading, have your accountant send off the esc 16 request, when you get the goahead transfer the funds using the interweb....they even have it Overseas!

One thing about Overseas, it's cheaper than here, so doesn't take much to keep the beer flowing.

[ASB]

thanks for the info ASB.
what's your view of a possible IR35 investigation being triggered from an ESC16?

Personal view is that it's nil. By the time the concession has been granted the revenue have implicitly accepted the companies affairs are in order. The mechanics of an IR35 investigation are (as far as I am aware) that the compliance review has to be initally launched against the company - which after it's struck off does not exist. (That pretty much summarises the professional advice I receive - but it's only worth what you pay for it).

You might want to try a search invliving "THEPUMA" because we did discuss this a bit in a previous thread I can't remember exactly what the outcome was - if I recall correctly his view was slightly different to mine - and (unlike me) he does know what he's talking about.

If you question is "what is the likelyhood of application for the concession causing a compliance review" then I haven't got a clue.

[THEPUMA]

Personal view is that it's nil. By the time the concession has been granted the revenue have implicitly accepted the companies affairs are in order. The mechanics of an IR35 investigation are (as far as I am aware) that the compliance review has to be initally launched against the company - which after it's struck off does not exist. (That pretty much summarises the professional advice I receive - but it's only worth what you pay for it).

You might want to try a search invliving "THEPUMA" because we did discuss this a bit in a previous thread I can't remember exactly what the outcome was - if I recall correctly his view was slightly different to mine - and (unlike me) he does know what he's talking about.

If you question is "what is the likelyhood of application for the concession causing a compliance review" then I haven't got a clue.

Thanks ASB that's the nicest thing anyone's ever said about me on this board but I think you do yourself an injustice. Anyway,...

I don't think application for the concession would ever be the catalyst for an IR35 enquiry.

Incidentally, there is no need to wait 3 months before getting your cash out of the company. Although it takes 3 months to close a company down, the capital distribution can be made much earlier than that. We normally just wait for the ESC C16 clearance to be granted (although occasionally clients have made payment even before clearance was granted in particularly time-sensitive circumstances).