Reply to: Limited Company Closure Route

[jamesbrown]

Is it possible for you to give proper answers? Or do we have to presume you are trolling?

If they aren't trolling, it would be good to know where they work, so they we can all avoid that firm like the plague.

[SueEllen]

No because I am phoenixing it. new company for new contracting project.

Is it possible for you to give proper answers? Or do we have to presume you are trolling?

[northernladuk]

No because I am phoenixing it. new company for new contracting project.

Are you actually Phoenixing? I thought this was around failed businesses to avoid liabilities. Closing and opening to use tax advantages is different now?

[badgernumber1]

No because I am phoenixing it. new company for new contracting project.

Seriously? This is a property developer?

[TheFaQQer]

No because I am phoenixing it. new company for new contracting project.

[john@UKCA]

Would that be because of the line of business or just the amount involved? Or both? :-) I mean does 'property contractor' imply an investment company (so that ER isn't available)? Or is it just that they stand to gain more if they can disallow the relief?

No because I am phoenixing it. new company for new contracting project.

[badgernumber1]

Now the one I sent for a MVL last week for £850K for a property contractor is one HMRC would be interested in!

Would that be because of the line of business or just the amount involved? Or both? :-) I mean does 'property contractor' imply an investment company (so that ER isn't available)? Or is it just that they stand to gain more if they can disallow the relief?

[WordIsBond]

Which company do you work for? Every other accountant on here lets us know, so can you confirm whether you are from ukcontractoraccountant dot com or are you just a UK contractor accountant?

TIA

Would you believe the answer if one was given? It's either a sockie or someone from another company set out to discredit them.

[TheFaQQer]

Now the one I sent for a MVL last week for £850K for a property contractor is one HMRC would be interested in!

Which company do you work for? Every other accountant on here lets us know, so can you confirm whether you are from ukcontractoraccountant dot com or are you just a UK contractor accountant?

TIA

[Alan @ BroomeAffinity]

Apologies guys
But I kinda feel like my thread is hijacked !

NOW, it's been hijacked. :-)

[john@UKCA]

Having been fair, I want to go back to your comment that triggered the disagreement. This is what you said:

Just two points here:
1. There was no "this is my understanding" disclaimer, you were stating it with certainty as a fact. Thus, the criticism by Maslins was entirely warranted.
2. Your final sentence was a nonsense. If there is no problem coming back to contracting, it is NOT because ER is not claimed, but because of the substance of the case. The claiming of ER, or not, is irrelevant to the question. It is the decision to take the funds as capital gains, rather than as dividends, that creates any potential risk here. That option is available without ER because of the small amount, but it does not eliminate the risk that if HMRC decide you did a winding up just to take profit as capital, rather than as dividends, they will challenge it. The use or non-use of ER is irrelevant to that problem.

The point of the sentence - he is not claiming ER which is the flag HMRC will look for on any Tax Return submitted claimng the relief. Claiming ER post 6 April = increased risk if returning to contracting or phoenixing.

In OP's case the distribution does not even need to be disclosed on his or his wife's Tax Return so HMRC are unlikely (risk close to zero as can be) to pick this up for review/investigation.

Now the one I sent for a MVL last week for £850K for a property contractor is one HMRC would be interested in!

[john@UKCA]

To be fair, JB, "UK Contractor Account" was responding at that point to someone other than the OP, and it was a distribution well under £25K, probably under £10K, in view.

its so small that it doesnt even need to be shown on a Tax Return - so how would HMRC even know he had received a capital distribution?

So the risk is zero or close to zero as can be.

Same risk as anybody in the UK submitting a Tax Return to HMRC.

Unless he has a 'stash' in an undisclosed offshore bank account.

[northernladuk]

I dont mean to be rude either - but really what would you know.

Well as a contractor and therefore a potential customer I'm not really feeling it.

[john@UKCA]

I don't want to be rude but are you really expecting to run business under this brand? It's..erm... Not going so well for you so far.. :

I dont mean to be rude either - but really what would you know.

[john@UKCA]

Yes.

It was foolish to say there is no risk (anyone want to bet this "accountant" that has started posting here isn't ICAEW?),

What's ICAEW? is that some sort of International Coalition Against Enforced (contractor) Workers.

Please send link so that to I can join