Dividend withdrawal strategy on closing limited company

[northernladuk]

But the fact the OP is taking a permie job inbetween is clear evidence they are not phoenixing or trying to use the system to gain tax advantage. It is unfortunate that they shut the business down in good faith and how ever long later the plan didn't work and they have to start a new business. Completely unrelated events with proof. Surely that is enough evidence?

We haven't mentioned timescales here but I would hope the OP can stay perm at least a couple of months and then a notice period so there would be at the very least a 6 month gap between the two companies.

[Maslins]

But the fact the OP is taking a permie job inbetween is clear evidence they are not phoenixing or trying to use the system to gain tax advantage. It is unfortunate that they shut the business down in good faith and how ever long later the plan didn't work and they have to start a new business. Completely unrelated events with proof. Surely that is enough evidence?

We haven't mentioned timescales here but I would hope the OP can stay perm at least a couple of months and then a notice period so there would be at the very least a 6 month gap between the two companies.

That's my view too...though if permie job is coincidentally with last client of Oldco, who also happened to be first client of Newco, it would all start to look a bit more suspicious!

[intalex]

Agreed, although I'm not sure a client would generally agree to someone operating as a contractor, then permie, then contractor again. There are potential tax risks for the client as well.

I think contract -> permie is probably the most common route as there are some benefits (mainly intangible) for both parties to do so.

Thanks everyone for sharing their views - hopefully Craig's well explained strategy above will make it easy for others to know their options when considering winding up their company.

[northernladuk]

That's my view too...though if permie job is coincidentally with last client of Oldco, who also happened to be first client of Newco, it would all start to look a bit more suspicious!

Well if that was the case he has IR35 and a whole host of other issues to worry about not just pheonixing... Would be bloody stupid to try follow that model.