Originally posted by Jessica@WhiteFieldTax
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I appreciate the "no intention of continuing the trade" is the sometimes grey one for contractors, as they're perhaps more likely than other businesses to cease, take on a PAYE role/similar, then start trading again doing something very similar relatively soon after (ie months/low number of years)...but if we're simply talking about time between ceasing and closing in isolation, I don't see any difference between contractors and other businesses, and therefore don't see any reason why closing very soon after ceasing is in any way contentious. As above, I think for practical reasons it can make sense to delay, eg not being kept on following probation at a permie role.
As an aside, transactions in securities (TiS) is something that if it were to bite would materialise following personal tax returns, and it'd be those distributions which could theoretically be challenged. However, wouldn't any risk along the IR35 lines bite the company, and therefore be challenged during close down? To date, with ~250 liquidations under our belt, MVLO haven't seen a single hold up relating to IR35 enquiries.
My point being, I'm still modestly cautious about TiS as that could bite further down the line, but I've seen zero evidence of closure prompting IR35 questions.
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