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Closing old company / starting a new one

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    #31
    Originally posted by MarkT View Post
    All correct that the clock doesn't reset, but if a company is dissolved, how would HMRC be able to look back and see what has been claimed in the past? After 6 years you have no reason to keep anything, so how can they prove/disprove anything?
    Yes in the short term it's a dodgy thing to do without doubt, but over time, the risk goes away.
    Realistically, probably - if you have the money to hand ready to give them as soon as they ask then I agree the risk is very low

    Originally posted by northernladuk View Post
    The risk of getting caught for tax evasion just so you can claim some mileage. Hmmm let me think...
    Could be talking about savings into the £1000s so it is worth trying to understand the risk, especially given how much of a grey area it is - how many people really understand this rule properly? Has anyone ever been given a tax penalty for misclaiming their travel/mileage with respect to the 24 month rule? I've never heard of it (in which case the only risk is the interest)

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      #32
      Originally posted by pr1 View Post
      Realistically, probably - if you have the money to hand ready to give them as soon as they ask then I agree the risk is very low



      Could be talking about savings into the £1000s so it is worth trying to understand the risk, especially given how much of a grey area it is - how many people really understand this rule properly? Has anyone ever been given a tax penalty for misclaiming their travel/mileage with respect to the 24 month rule? I've never heard of it (in which case the only risk is the interest)
      Indeed but take in to account how many contractors stay in a gig over 2 years, and then how many flaunt the rule. You are looking at a pretty small number of people. Does that reduce the risk or if only one in that small percentage gets investigated do a high majority get caught? And how do we know how many people have been pulled up about it. It's hardly going to hit the news.

      There is then the risk of other action. Getting investigated isn't fun and who knows what else you've been ignoring. They'll go through your business with a fine toothed comb. IR35 investigations are purportedly started from other investigations and you are sitting there with over 2 years at a client. Tasty.

      I guess it's down to risk profiles I guess. Potentially exposing myself and my company to all that just to claim expenses is way outside of mine. Each to their own.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

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        #33
        Originally posted by northernladuk View Post
        Indeed but take in to account how many contractors stay in a gig over 2 years, and then how many flaunt the rule.
        2 years in one gig, maybe not that many - but over 2 years in "Manchester City Centre" or "Canary Wharf", probably quite a few

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          #34
          Originally posted by pr1 View Post
          2 years in one gig, maybe not that many - but over 2 years in "Manchester City Centre" or "Canary Wharf", probably quite a few
          Well spotted to being it back to the geographical area!
          'CUK forum personality of 2011 - Winner - Yes really!!!!

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            #35
            Originally posted by northernladuk View Post
            The risk of getting caught for tax evasion just so you can claim some mileage. Hmmm let me think...
            Tax evasion isn't what this is, not for a moment.

            The holier than thou attitude on here is astonishing.

            We all need to pay the taxes we are legally bound to pay, however with grey rules like the 24 month rubbish and what happened with the claw back, no wonder people are trying to make their own interpretations.

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