What happens if the revenue call about IR35 but there's no money in the business?

[Wanderer]

Do they bother investigating contracts when the company is closed?

Technically they could but they would have to have the company restored and prove wrongful trading to actually get the director to pay back the dividends so they could be taxed. Even then they are going to have a hell of a fight against a director who will claim that they acted in good faith. What if the company had more than one shareholder too? It's all pretty messy really.

I don't think it's really talked about too loudly for fear that the cat will get out of the bag and people will start abusing the system by closing down their companies all the time....

[BolshieBastard]

Hi Folks

What is the position - in practice - if a company is closed down.

As I understand it, HMRC have to give the OK for the company to be struck out \ closed completely. They had their chance to perform any investigation up to that point.

Cant see how they could normally go after a company they agreed could be closed.

But, they are devious bastard's at HMRC so maybe they'd use non disclosure to re open the company?

[Platypus]

Technically they could but they would have to have the company restored and prove wrongful trading to actually get the director to pay back the dividends so they could be taxed. Even then they are going to have a hell of a fight against a director who will claim that they acted in good faith. What if the company had more than one shareholder too? It's all pretty messy really.

But, they are devious bastard's at HMRC so maybe they'd use non disclosure to re open the company?

Seems to me they are more likely to search for easier targets.

[Old Greg]

SJD (an individual accountant, not company policy possibly) have recommended this as a way of reducing risk.