I've moved away from the UK. 2y now (measured in tax residence).
I still have a UK company. Have withdrawn almost all funds as dividends. The DTA between the UK and my new country gives taxing rights on dividends to the new country. (Took paid advice to go over the SATR and ensure this would be legit).
I am very tempted to close the UK company, as this kinda sorta draws a line under the possibility of IR35 investigation (reading through threads on this forum, HMRC are technically able to reopen companies to investigate them, but in practise they tend to go for lower-hanging fruit). I feel confident about the outside-IR35 nature of my contracts, associated working practises, documentation, but that does not mean I would welcome an enquiry.
I could open another UK company within 2 years of closing this one. I have not needed to use BADR/entrepreneur's relief, and I should not be caught by TAAR because I'm paying tax on the dividends in the new country, thus no tax avoidance. However, my accountant suggested that while this would be technically possible/not fall foul of the rules, it's a bit unusual and could encourage HMRC to take a closer look.
Nb., the reason I'm thinking of clinging on to a UK company in some form is that UK agencies are increasingly inclined to only want to work with UK companies.
So TL;DR would appreciate any views on which seems less risky: close the UkCo#1 ASAP and begin the clock ticking on its liabilities but potentially open a UkCo#2 in less than 2 years, or just keep UkCo#1 going and potentially use it for any contracting needs (with the downside that all the IR35 history lingers on).
I still have a UK company. Have withdrawn almost all funds as dividends. The DTA between the UK and my new country gives taxing rights on dividends to the new country. (Took paid advice to go over the SATR and ensure this would be legit).
I am very tempted to close the UK company, as this kinda sorta draws a line under the possibility of IR35 investigation (reading through threads on this forum, HMRC are technically able to reopen companies to investigate them, but in practise they tend to go for lower-hanging fruit). I feel confident about the outside-IR35 nature of my contracts, associated working practises, documentation, but that does not mean I would welcome an enquiry.
I could open another UK company within 2 years of closing this one. I have not needed to use BADR/entrepreneur's relief, and I should not be caught by TAAR because I'm paying tax on the dividends in the new country, thus no tax avoidance. However, my accountant suggested that while this would be technically possible/not fall foul of the rules, it's a bit unusual and could encourage HMRC to take a closer look.
Nb., the reason I'm thinking of clinging on to a UK company in some form is that UK agencies are increasingly inclined to only want to work with UK companies.
So TL;DR would appreciate any views on which seems less risky: close the UkCo#1 ASAP and begin the clock ticking on its liabilities but potentially open a UkCo#2 in less than 2 years, or just keep UkCo#1 going and potentially use it for any contracting needs (with the downside that all the IR35 history lingers on).
Comment