Time for MVL or not and IR35

[philgo]

you do know that if they (HMRC) investigate you, they are likely to look at more than just the one contract?

How sure are you that you have no issues with the last 6 years?
Can you afford, or do have insurance or other cover for, legal fees?

Yes I understand that they could look back many years.
My previous contract was outside IR 35. That contract has been assessed in regards of IR 35 by a specialised firm and had passed the test.
What else can I do?
And how can you be sure you don't have any issues with the last 6 years? I mean if you look at the current situation a lot of companies have applied a blanket rule in regards of IR35 forcing lots of contractors to work inside and lots of them have accepted. Is HMRC going to check everyone?

[northernladuk]

Yes I understand that they could look back many years.
My previous contract was outside IR 35. That contract has been assessed in regards of IR 35 by a specialised firm and had passed the test.
What else can I do?
And how can you be sure you don't have any issues with the last 6 years? I mean if you look at the current situation a lot of companies have applied a blanket rule in regards of IR35 forcing lots of contractors to work inside and lots of them have accepted. Is HMRC going to check everyone?

I'm not sure this is an issue. They will open an investigation in to your activities at your current client. I haven't heard or seen a case where they go back through previous clients.

I don't think the one month is worthy of a full discussion. As you say it's peanuts really so if you feel you want to just go for the one month and then swap. I was going on more about the theoretical situation that this is exactly what HMRC will go for but there will be a hell of a lot more people with months if not years for them to pick on.

[Lance]

Yes I understand that they could look back many years.
My previous contract was outside IR 35. That contract has been assessed in regards of IR 35 by a specialised firm and had passed the test.
What else can I do?
And how can you be sure you don't have any issues with the last 6 years? I mean if you look at the current situation a lot of companies have applied a blanket rule in regards of IR35 forcing lots of contractors to work inside and lots of them have accepted. Is HMRC going to check everyone?

There is not a lot else you can do.

It was just your comment was that all that would happen is you pay for that month. Whilst that may be all that happens if you are investigated, there is also a risk that it might be more than that.

[GhostofTarbera]

I just spoke with MVL Online and indeed the timing is very very tricky!
I think It could only work if my company stops trading by the end of the week, get my accountant working out the accounts next week and then starts the MVL last week of Feb. But I am working right now on a contract...

I don't think that they will scrap BADR but they might increase the tax going with it.

By the way something I do not know. If I MVL when I have already started that new contract inside IR35, does it has an impact on MVL and ER cause I will become a new higher band tax rate payer?

Are you with a MVL friendly bank for your business current account ?


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[philgo]

There is not a lot else you can do.

It was just your comment was that all that would happen is you pay for that month. Whilst that may be all that happens if you are investigated, there is also a risk that it might be more than that.

OK - so if decide to keep the LTD open while I'm doing that Brolly contract are you suggesting that I should keep my current accountancy service at its maximum level? i.e. accounting, insurances, IR35 service ? Cause I was thinking to put the company INACTIVE as this is cheaper. Or is there any specialised insurance to contract?

[philgo]

Are you with a MVL friendly bank for your business current account ?


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I 'm afraid Metro bank is painfull.....
Can you recommend MVL friendly banks?

[Lance]

OK - so if decide to keep the LTD open while I'm doing that Brolly contract are you suggesting that I should keep my current accountancy service at its maximum level? i.e. accounting, insurances, IR35 service ? Cause I was thinking to put the company INACTIVE as this is cheaper. Or is there any specialised insurance to contract?

If you’re not doing an MVL, but are taking the cash as dividends, why not wind the company up anyway?
If you need another it’s only a couple of days to start one.
Or you could make it dormant. Ask your accountant what that means for your fees.

[GhostofTarbera]

I 'm afraid Metro bank is painfull.....
Can you recommend MVL friendly banks?

You are doomed then

MVL: Metro Bank not releasing my funds for 2 months
https://www.contractoruk.com/forums/...-2-months.html


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[philgo]

You are doomed then

MVL: Metro Bank not releasing my funds for 2 months
https://www.contractoruk.com/forums/...-2-months.html


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No I can still use one my business saving account from my other banks or open a more friendly business current acc before doing the MVL

[philgo]

If you’re not doing an MVL, but are taking the cash as dividends, why not wind the company up anyway?
If you need another it’s only a couple of days to start one.
Or you could make it dormant. Ask your accountant what that means for your fees.

I won't take cash as dividend if I do not MVL because is not tax efficient with my other 6 months contract inside. MVL makes sense if I want the cash now and are sure I will no contract outside IR35 for next 2 years. Not sure of the latter.
I cannot open a new LTD doing the same activity if I MVL my current LTD. You have to wait 2 years.