Dormant / New Ltd Company

[SoylentGreen]

I had been contracting in the UK via a limited company for a few years up to 2006 or 2007. The company is currently dormant; however I have the opportunity of a contract again for 6 months. Should I resurrect the old company and trade through it, or can I incorporate a new company for the new contract and possibly beyond?
Thanks in advance,
SG.

[Clare@InTouch]

Either. It's probably cheaper to use the old company as it saves setting up a new one, but it's not a massive saving on incorporation fees. Providing the old company has a decent history and is up to date on filing accounts etc then there's no reason not to use it unless you want a fresh start with zero trading history.

[mark5y]

Either. It's probably cheaper to use the old company as it saves setting up a new one, but it's not a massive saving on incorporation fees. Providing the old company has a decent history and is up to date on filing accounts etc then there's no reason not to use it unless you want a fresh start with zero trading history.

Do you know if it would it be possible to liquidate the company at the end of the six months (if the contract is not extended for example) then claim entrepreneurs relief?

[Nixon Williams]

Do you know if it would it be possible to liquidate the company at the end of the six months (if the contract is not extended for example) then claim entrepreneurs relief?

No - you have to have traded for at least 12 months to qualify for entrepreneur's relief.

Alan

[mark5y]

Thanks Alan