Entrepreneurs relief - 2 years of trading - Contractor UK Bulletin Board

Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

Old Greg replied

29 May 2019, 13:06
Originally posted by Jess inniAccounts View Post

Hi Sandy

Your company must be actively trading for two years, as opposed to being open for two years.

So find yourself a couple of days' work in the New Year somehow.
Leave a comment:
Jess inniAccounts replied

29 May 2019, 11:35
Originally posted by Sandy100 View Post

Hi everyone, sorry a newbie here! I've been contracting for almost two years and am looking to go perm. The HMRC rules say that the company has been trading for 2 years to claim ER, but how is trading defined? If the company is simply 'open' for two years does that qualify? If my contract dates are 1 Jan 2018 to 15 Dec 2019 (for example), and the company is closed a few weeks after (say 1 Jan 2020), is that a 2 year trading period? Thanks!

Hi Sandy

Your company must be actively trading for two years, as opposed to being open for two years.
Leave a comment:
northernladuk replied

26 May 2019, 09:18
A couple of guides mention a rule of thumb about 20% of time not doing the main activity will be a problem. This guide for example.
https://www.tolley.co.uk/__data/asse...urs_relief.pdf

But the best person to ask would be your accountant no?
Leave a comment:
Sandy100 started a topic Entrepreneurs relief - 2 years of trading

26 May 2019, 08:36
Entrepreneurs relief - 2 years of trading

Hi everyone, sorry a newbie here! I've been contracting for almost two years and am looking to go perm. The HMRC rules say that the company has been trading for 2 years to claim ER, but how is trading defined? If the company is simply 'open' for two years does that qualify? If my contract dates are 1 Jan 2018 to 15 Dec 2019 (for example), and the company is closed a few weeks after (say 1 Jan 2020), is that a 2 year trading period? Thanks!
Tags: None