Reopening a company vs open a new one

**TheFaQQer** · 14 March 2013, 14:42

Why do you need to open one from 5th April? I'd wait until you need one and then open it. There's no point in opening it until you need to - if you are thinking about the flat rate VAT scheme then this gives a 1% discount in your first year of VAT registration, so you don't want to be VAT registered until you can use that.

The only concern that I could think of is if you are seen to essentially be phoenixing the company - since you had a year off, I'm not sure that would be a worry though.

**Goggy** · 14 March 2013, 14:50

Originally posted by TheFaQQer View Post

Why do you need to open one from 5th April? .

To open it later(after the 5th of Apr) is not that much of a problem,
but I'm not sure if it's a good idea to I agree on a contract that starts before the end of the March (25th of March, let's say). I think it's better to wait till the beginning of the new fin year so that I don't have 2 companies in the same fin year especially with the same address.
Am I right? or it doesn't matter?

**northernladuk** · 14 March 2013, 14:54

Although the timescales would indicate you are not pheonixing, wouldn't re-using the name possibly attract unwanted attention and cause you have to prove the same? Wouldn't it just be better to start again? You cannot re-use any systems associated with the old company, bank accounts etc and you would have a new registration number anyway.

Why not just start with a new company and new name and start afresh? What are the benefits to you about keeping the old name? Old times sake? It was your first company??

**northernladuk** · 14 March 2013, 14:55

Originally posted by Goggy View Post

Hi

I've closed down my company on the 31th of March 2012 & had a gap year.

Now I'm looking for a job and thinking of contracting again. Therefore I'd need to open a company from the 5th of Apr. (not to have 2 companies in the same financial year)

1) Can I open a company with the same name or it should be a brand new one?
2) Can the same business address & business owner raise a concern to HMRC people?

Any advice/recommendation/useful info is highly appreciated!

<pedant>So which is it? Are you going contracting or are you looking for a job..... :

</pedant>

**Maslins** · 14 March 2013, 14:57

Can't see any major issues. If you did benefit from ESC C16 on closure, I'd be inclined to NOT use the same company name. You'd want to minimise the (small) risk of them arguing you just closed to get the tax break then start straight back up doing the same thing.

**TheFaQQer** · 14 March 2013, 15:08

Originally posted by Goggy View Post

To open it later(after the 5th of Apr) is not that much of a problem,
but I'm not sure if it's a good idea to I agree on a contract that starts before the end of the March (25th of March, let's say). I think it's better to wait till the beginning of the new fin year so that I don't have 2 companies in the same fin year especially with the same address.
Am I right? or it doesn't matter?

I doubt it matters - my accountants offer the service of having their office as the registered office for the company, so they must do it all the time.

**Goggy** · 14 March 2013, 15:45

Originally posted by TheFaQQer View Post

I doubt it matters - my accountants offer the service of having their office as the registered office for the company, so they must do it all the time.

Sounds interesting!
Could you please let me know who are your accountants? (you can drop me a private message if you prefer)

**TheFaQQer** · 14 March 2013, 16:08

Originally posted by Goggy View Post

Sounds interesting!
Could you please let me know who are your accountants? (you can drop me a private message if you prefer)

InTouch.

If you go with them, tell Clare that I referred you, and I get a free month

**northernladuk** · 14 March 2013, 16:45

Originally posted by TheFaQQer View Post

InTouch.

If you go with them, tell Clare that I referred you, and I get a free month

And tell them NorthernladUK says hello and I might get a bit less grief from her on the forums!

Reopening a company vs open a new one