Originally posted by sombradonkey
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Previously on "Administrated Dissolution - A good way to close limited company?"
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Administrated Dissolution
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Originally posted by jamesbrown View PostSadly, there will always be a sufficiently large number of clueless and gullible contractors to justify the efforts of dodgy individuals and schemes. All we can do is to point people in the right direction. At least some of the noobs are asking for advice and hopefully taking it, and I definitely wouldn't put them in the clueless/gullible category.
The first step in solving a problem is to accept there is a problem.
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Originally posted by ascender View PostThat's crazy advice, but the situation the OP finds himself in I suspect might become quite commonplace over the next while. I know a few benched colleagues who didn't make the move to umbrella when offered and now due to some of the big companies blanket-banning PSCs and the impact of COVID, are burning through their warchest and money left in the company which is set aside for their upcoming tax bills.
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That's crazy advice, but the situation the OP finds himself in I suspect might become quite commonplace over the next while. I know a few benched colleagues who didn't make the move to umbrella when offered and now due to some of the big companies blanket-banning PSCs and the impact of COVID, are burning through their warchest and money left in the company which is set aside for their upcoming tax bills.
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Originally posted by sombradonkey View PostHi,
Isn't the entire purpose of a Limited company that the financial liability is limited to the comany structure and doesnt endanger the owners personally?
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Originally posted by sombradonkey View PostHi,
Isn't the entire purpose of a Limited company that the financial liability is limited to the comany structure and doesnt endanger the owners personally?
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Originally posted by NowPermOutsideUK View PostThis guy does not understand what the office receiver or any liquidator would do...
Unless you have no Uk assets and can disappear quickly if needed you are insane.
In short he is suggesting taking assets out and leaving the company with debts to hmrc. This has been tried before and liquidators will sue you personally
Complete non starter
Isn't the entire purpose of a Limited company that the financial liability is limited to the comany structure and doesnt endanger the owners personally?
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Oh joy the phoenix company approach to avoid solving dodgy work and court demands has arrived in the contracting industry.
Just close the company down properly - if you adopt future strategy's approach it wouldnt surprise me if you became HMRC's first outside to inside IR35 case with HMRC keeping the company open so they could really make you suffer.
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Total nonsense. Any such dividend would be ultra vires and easily reclaimed from you personally, end of story.
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Start with the basics. HMRC won't allow you to close a company that owes them money. So your advisor is either an idiot or a shark...
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Wouldn't it go against your role as a director to fail to pay the company's liabilities and instead run off with the cash?
Go for it, let us know how it all works out...
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This guy does not understand what the office receiver or any liquidator would do...
Unless you have no Uk assets and can disappear quickly if needed you are insane.
In short he is suggesting taking assets out and leaving the company with debts to hmrc. This has been tried before and liquidators will sue you personally
Complete non starter
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It sounds too good to be true.
Go and have a read over here for tales from people who went for a wheeze that was too good to be true. https://www.contractoruk.com/forums/...eme-enquiries/
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Originally posted by sombradonkey View PostI was a Limited Company contractor before IR35 but now working PAYE Umbrella for the same employer.
I want to get rid of my limited company as I doubt I will be using it again, and I have two options:
Option 1 suggested by my existing accountant: Pay for them to do my final accounts, pay the Corportation Tax that I owe, and leave it there.
- This will cost a few hundred.
Option 2 suggested by 'Future Strategy': perform an 'Administrated Dissolution', do not pay the Corportation Tax tax that the limited company owes, and save myself several thousand.
It suffices to say that Option 2 is tempting! Here is how it was explained to me:
- The company is closed
- The Limited company PAYS NO CORPORATION TAX (the cash that Isaved in my business acct is paid out in dividends instead)
- The company's creditors (HMRC) are notified that the debt due will not be paid.
- They will dispute this, and there will be nothing that they can do.
- There are zero reprecussions in terms of other limited companies, personal credit history, etc. UNLESS open essentially the same limited company to continue contracting (this would be a 'phoenix' company rising from its own ashes that would be illegal). So this is a one-time thing for those coming off of IR35.
- I am not sure if me continuing to work for the same employer under Umbrella PAYE or as a Permanant employee will count as a 'Pheonix company activity'? Will an Administrated Dissolution prevent me from working in the sasme industry?
- The guy says this is entirely legal, and that the changes of a retrospecive ruling forcing me to pay up in the future (similar to Loan Charge I saw in the news) is remote.
The website looks good:
Future Strategy
Trustpilot reviews look good but only go back a year:
Future Strategy Reviews | Read Customer Service Reviews of futurestrategy.co.uk | 2 of 4
Any advice that seasoned Contractor Accountancy experts can share would be appreciated!
Originally posted by sombradonkey View PostThe guy says this is entirely legal, and that the changes of a retrospecive ruling forcing me to pay up in the future (similar to Loan Charge I saw in the news) is remote.
Is ‘this guy’ a tax barrister? Has he given you a written confirmation from HMRC saying that they won’t close this?
Have you checked that this is even legal for your situation?
Or does a Shark see a gullible ex-contractor that said shark can take money from without consequence (to the shark, obviously)?
(Although I’m sure that you aren’t gullible, are you?)
So many questions...
Oh, and I dont think TrustPilot reviews are worth spit.
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Administrated Dissolution - A good way to close limited company?
I was a Limited Company contractor before IR35 but now working PAYE Umbrella for the same employer.
I want to get rid of my limited company as I doubt I will be using it again, and I have two options:
Option 1 suggested by my existing accountant: Pay for them to do my final accounts, pay the Corportation Tax that I owe, and leave it there.
- This will cost a few hundred.
Option 2 suggested by 'Future Strategy': perform an 'Administrated Dissolution', do not pay the Corportation Tax tax that the limited company owes, and save myself several thousand.
It suffices to say that Option 2 is tempting! Here is how it was explained to me:
- The company is closed
- The Limited company PAYS NO CORPORATION TAX (the cash that Isaved in my business acct is paid out in dividends instead)
- The company's creditors (HMRC) are notified that the debt due will not be paid.
- They will dispute this, and there will be nothing that they can do.
- There are zero reprecussions in terms of other limited companies, personal credit history, etc. UNLESS open essentially the same limited company to continue contracting (this would be a 'phoenix' company rising from its own ashes that would be illegal). So this is a one-time thing for those coming off of IR35.
- I am not sure if me continuing to work for the same employer under Umbrella PAYE or as a Permanant employee will count as a 'Pheonix company activity'? Will an Administrated Dissolution prevent me from working in the sasme industry?
- The guy says this is entirely legal, and that the changes of a retrospecive ruling forcing me to pay up in the future (similar to Loan Charge I saw in the news) is remote.
The website looks good:
Future Strategy
Trustpilot reviews look good but only go back a year:
Future Strategy Reviews | Read Customer Service Reviews of futurestrategy.co.uk | 2 of 4
Any advice that seasoned Contractor Accountancy experts can share would be appreciated!Tags: None
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