There are related threads that mention the cost of wind up (and get the best value) but my situation is combination so thought it less confusing to lay it all out.
I have just (in mid February so cutting it fine) attempted to go the ESC C16 route before the deadline, paying my accountant an extra bit for the expediency required. He said there was still a good chance I'd be too late but I figured it was worth going for. Things were messed up by HMRC direct debiting my corporation tax for last year in January even though I'd already paid it 3 weeks early (warning for you there). I was expecting the refund in my account a week later but instead received a cheque in the post days before the deadline which added 5 business days to take it to a bank and wait for it to be cashed and paid into my personal account.
The reason for the late panic decision was that it was only in February that another start up I got involved with last year got sign of getting a big contract that would take up all my time (and pay more). Since I guess it would be IR35 dodgy to be contracted out to another company of which I am a director it made sense to wind up my ltd.
I'm still waiting on the decision from HMRC. Assuming that I did miss the deadline, having now withdrawn all the funds what exactly is the winding up I am paying £2.5k for (going off THEPUMA's price. My accountant said £4k in February and is now saying 6
)? Is £2.5 really the lowest cost for this? Given that the new rule "is expected to have a negligible impact on receipts" to the Exchequer, it seems small businesses are just being forced to pay crony agencies a few k to close down.
Is a winding up (in ESC C16 terms) the same as Members' Voluntary Liquidation?
Now the start up isn't moving as fast as we'd hoped so I might be looking at doing one more contract for maybe 3 months while things get moving.
So the separate question is what is the best company to do this under?
- An umbrella
- The start up which is a software services company with 5 directors/shareholders (none salaried yet). I guess it would have to be as salary and bonuses (if we get the big contract I'll be over the 50% income tax bracket, if we don't I might be contracting a bit longer and still be close)
- Can I 'undo' the wind up if I get a no from HMRC given the situation as is?
I have just (in mid February so cutting it fine) attempted to go the ESC C16 route before the deadline, paying my accountant an extra bit for the expediency required. He said there was still a good chance I'd be too late but I figured it was worth going for. Things were messed up by HMRC direct debiting my corporation tax for last year in January even though I'd already paid it 3 weeks early (warning for you there). I was expecting the refund in my account a week later but instead received a cheque in the post days before the deadline which added 5 business days to take it to a bank and wait for it to be cashed and paid into my personal account.
The reason for the late panic decision was that it was only in February that another start up I got involved with last year got sign of getting a big contract that would take up all my time (and pay more). Since I guess it would be IR35 dodgy to be contracted out to another company of which I am a director it made sense to wind up my ltd.
I'm still waiting on the decision from HMRC. Assuming that I did miss the deadline, having now withdrawn all the funds what exactly is the winding up I am paying £2.5k for (going off THEPUMA's price. My accountant said £4k in February and is now saying 6
)? Is £2.5 really the lowest cost for this? Given that the new rule "is expected to have a negligible impact on receipts" to the Exchequer, it seems small businesses are just being forced to pay crony agencies a few k to close down.Is a winding up (in ESC C16 terms) the same as Members' Voluntary Liquidation?
Now the start up isn't moving as fast as we'd hoped so I might be looking at doing one more contract for maybe 3 months while things get moving.
So the separate question is what is the best company to do this under?
- An umbrella
- The start up which is a software services company with 5 directors/shareholders (none salaried yet). I guess it would have to be as salary and bonuses (if we get the big contract I'll be over the 50% income tax bracket, if we don't I might be contracting a bit longer and still be close)
- Can I 'undo' the wind up if I get a no from HMRC given the situation as is?
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