Closing down ltd/starting up again

[TheFaQQer]

I am considering going perm, and so interested in this comment. If I leave the company dormant, would i need to also keep public indemnity and IPSE membership etc running in case an old client had a problem with something that was done under an old contract, or HMRC wanted to investigate IR35 status for a prior contract etc?? Would closing the company down, effectively mean that these things could no longer happen as the co is no longer active?

HMRC could still investigate your IR35 status and pursue for the tax owed. When your IPSE membership is up for renewal, give the office a call and discuss the options available to you.

[psychocandy]

You need to bear in mind that any cash currently held in the Ltd accounts would be less easy to conceal from the Job Centre, once it's in personal accounts.

None in there anyway.

[Fred Bloggs]

I am considering going perm, and so interested in this comment. If I leave the company dormant, would i need to also keep public indemnity and IPSE membership etc running in case an old client had a problem with something that was done under an old contract, or HMRC wanted to investigate IR35 status for a prior contract etc?? Would closing the company down, effectively mean that these things could no longer happen as the co is no longer active?

Cannot be 100% guaranteed but pretty much, yes. A company cannot be struck off without HMRC saying they have no objection. You'd still have certain obligations as the ex director, but FWIW, I think it is a waste of time and effort keeping a non trading company open. They're so easy to open and close at virtually zero cost, I can't see how it makes sense to keep one going. Of course, YMMV, but that's my 2 cents.

[northernladuk]

I am considering going perm, and so interested in this comment. If I leave the company dormant, would i need to also keep public indemnity and IPSE membership etc running in case an old client had a problem with something that was done under an old contract, or HMRC wanted to investigate IR35 status for a prior contract etc?? Would closing the company down, effectively mean that these things could no longer happen as the co is no longer active?

Google is your friend.

http://www.contractoruk.com/ir35/con...ding_4706.html

[mrtuk]

Closing down a Ltd Co is a very easy thing to do and has advantages in closing off certain future tax issues that may otherwise bite you in the future.

I am considering going perm, and so interested in this comment. If I leave the company dormant, would i need to also keep public indemnity and IPSE membership etc running in case an old client had a problem with something that was done under an old contract, or HMRC wanted to investigate IR35 status for a prior contract etc?? Would closing the company down, effectively mean that these things could no longer happen as the co is no longer active?

[WordIsBond]

Is it a full church wedding, or just the reception office for you two?

This is like their fifth (or fiftieth) time, they'll probably just skip the ceremony this time (and the legal fees they always have to pay when they break it off) and just pick a place from this list to go for hols together.

[northernladyuk]

You need to bear in mind that any cash currently held in the Ltd accounts would be less easy to conceal from the Job Centre, once it's in personal accounts.

[Fred Bloggs]

I agree that keeping your company going is a pointless expense. When I wanted a new company to accept a contract, I called the accountant at 9.00am and by 3.30pm I had the company registration certificate and was ready to start invoicing. No charge from the accountant.

I have closed two Ltd companies down recently. One accountant took over a year to manage this very simple process. The other accountant took three days. Neither charged me anything extra aside from the normal monthly fee. You need to check the terms of engagement from when you signed up for the service you are using. Closing down a Ltd Co is a very easy thing to do and has advantages in closing off certain future tax issues that may otherwise bite you in the future.

[northernladuk]

Talk with your accountant....... .

If he'd done this in the first place this thread wouldn't be required.

[TheCyclingProgrammer]

Closing down is fairly easy, but you need to think about how you want to deal with any retained profits left in the business. If its a significant amount you'd really need to look at an MVL and capital distribution (with ER if eligible) to save tax but bear in mind the implications of the two year returning to the same trade rule.

If you don't have much then simpler to just distribute what's left as a dividend, you'll have no restrictions on starting up a new co. when you need one.

[billybiro]

Why don't you ask your accountant seems they will know exactly what is involved and will know you exact circumstances. They also offer company formation services so will be able to tell you how much to start one up.

When will you attempt to handle one aspect of your company by yourself? Just one, even a small one! I mean, you say you have an accountant engaged and then ask a question that your accountant can answer. Jesus.

Lazy post PC, even by your standards.

Is it a full church wedding, or just the reception office for you two?

[gables]

Haven't traded through ltd since start of company year (1st June). Looks like I'm going to be staying umbrella for the foreseeable future at least.

What are the costs associated with closing down the limited and then re-opening in the future if needs be? Also, assume Id still have to do a year end in May 2018 (or is this all done and dusted in company close down?)

Been paying accountant half fees since April, guessing there is work involved in closing down ltd so they're probably not going to process this based on pretty much 3 months 1/2 payments.

Other option is to leave company dormant, but means Im paying half accountant fees for this time. Bit of a waste.

It's only been since June you've not traded which is no time at all and given how contracts can change at a moments notice I wouldn't be considering this at all at this stage. Talk with your accountant about the costs for producing a set of dormant accounts for 2017/2018 if you don't trade at all by next June. FWIW I kept my first ltd dormant between 2002 and 2014, you know just in case like cost me £90 a year accountant fees.

You don't need an accountant to start up a ltd, I did mine in Feb 2015 for the princely sum of £15 on Companies House website and took no time at all, like a couple of days.

[psychocandy]

Bore Da NLUK - how are you this fine August morning?

Im off on hols for two weeks after this week - I'll try and keep posting in case you miss me!

[northernladuk]

Why don't you ask your accountant seems they will know exactly what is involved and will know you exact circumstances. They also offer company formation services so will be able to tell you how much to start one up.

When will you attempt to handle one aspect of your company by yourself? Just one, even a small one! I mean, you say you have an accountant engaged and then ask a question that your accountant can answer. Jesus.

Lazy post PC, even by your standards.

[psychocandy]

Haven't traded through ltd since start of company year (1st June). Looks like I'm going to be staying umbrella for the foreseeable future at least.

What are the costs associated with closing down the limited and then re-opening in the future if needs be? Also, assume Id still have to do a year end in May 2018 (or is this all done and dusted in company close down?)

Been paying accountant half fees since April, guessing there is work involved in closing down ltd so they're probably not going to process this based on pretty much 3 months 1/2 payments.

Other option is to leave company dormant, but means Im paying half accountant fees for this time. Bit of a waste.