Closing LTD Company in April 2020, and start new LTD for client determined contracts

[eldy]

Hi,

I don't think i've seen any discussion of this yet so question is...

Is anyone thinking of closing there LTD company in April 2020, empty out the business bank account as Dividend, and then start afresh with new LTD to cover work on contracts that have been determined outside IR35 by clients?

Purpose of doing this would be to close possibility of HRMC coming after me in future, even if contracts have been determined by QDOS as outside IR35, obviously maintaining the QDOS insurance 12 months after closure just in case, it would give more peace of mind.

Closure of LTD would be via Strike Off, not MVL, and there would be no need to keep paying QDOS ir35 insurance after the 12 month period of closure for those contracts pre-April 2020.

[GhostofTarbera]

I believe you are the 1st person to come up with this loopy plan completely bonkers

Go for it


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[northernladuk]

By jove. What a novel idea. Why didn't we think of this earlier.

[BABABlackSheep]

Actually, thinking about this.

You pay yourself all your dividend in April for the year. Then if you’re forced to go Umbrella or Permie you’re screwed, as you have no tax allowance left! Can’t guarantee outside IR35 work for that whole tax year.

Right?

[eldy]

If your stuck with Umbrella or Perm then you would pay yourself minimum wage salary and rest to Pension for that tax year

That should maintain the dividend tax at 7.5% I think

[northernladuk]

If your stuck with Umbrella or Perm then you would pay yourself minimum wage salary and rest to Pension for that tax year

That should maintain the dividend tax at 7.5% I think

You can't pay yourself minimum wage when you are perm or umbrella.

[GhostofTarbera]

If your stuck with Umbrella or Perm then you would pay yourself minimum wage salary and rest to Pension for that tax year

That should maintain the dividend tax at 7.5% I think

Can I have a pint of your loopy juice please ?




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[eldy]

You can't pay yourself minimum wage when you are perm or umbrella.

You would state 100% pension payment, then umbrella pays as much as possible to the Pension and what ever they are legally supposed to pay you (I.e minimum wage) goes to you, you can then put that wage in Pension yourself

Also able to make use of Pension Carry Forward for previous tax year allowances

[northernladuk]

You would state 100% pension payment, then umbrella pays as much as possible to the Pension and what ever they are legally supposed to pay you (I.e minimum wage) goes to you, you can then put that wage in Pension yourself

Also able to make use of Pension Carry Forward for previous tax year allowances

You've got to find a brolly that would allow max pension submissions, not many of them about. You can't back pay as you've only been a member of that scheme that year so no previous years to use. You can only put 40k in, rest is taxed and so on and so on.

You need to put a lot more detail in so it doesn't look like some pie in the sky guess...

But I'm not sure where this thread is really going now.

[eldy]

Yep, but my plan to close and open seems good right?