New Contract - What Does a Prudent Contractor Do?

[northernladuk]

6 years after finishing last contract no?

that's the time that an investigation can go on for, or do you mean if the LTD is closed they're not likely to chase beyond a couple of years?

That would be the absolute max to be safe yes but general thinking is one to two years. That said I don't think we've evidence of it happening after closure yet but a year or two is cheap enough.

[Larsen Howie]

That would be the absolute max to be safe yes but general thinking is one to two years. That said I don't think we've evidence of it happening after closure yet but a year or two is cheap enough.

Andy answered this on a previous post using the case of Larkstar Data Ltd whereby the time the matter was settled, the contractor, Alan Brill, had retired & there was £130 left in the company bank account which it is believed to be the final settlement figure. HMRC can issue a director with a Personal Liability Notice to collect the debt, if they feel that the failure to deduct & pay PAYE tax & NIC was attributable to the fraud or wilful failure of the individual to do so.

To date i don't believe, neither have I known HMRC to use these powers in an IR35 scenario but they are available to the department if they need them.

LH

[Guesstimator]

That would be the absolute max to be safe yes but general thinking is one to two years. That said I don't think we've evidence of it happening after closure yet but a year or two is cheap enough.

Coolio, cheers.

And to you LH