Originally posted by jamesbrown
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Previously on "MVL - entrepreneurs relief and starting new LTD Company"
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Originally posted by luxCon View PostAs with Exhibit A it was said in jest but clearly the gel in some contributor's head is set too hard to get it
As for B, I am happy to be corrected and the forum to become source of Facts rather than assumptions. Why dont you correct any misinformation with valid reference to external sources rather than attack
As for reference. Jamesbrown corrected you quite correctly. It's quite hard to reference the fact that TAAR is not related to ER as it's not related. One is a rule on what you can do after a capital distribution. The other is a personal tax relief on capital gains. You might argue they are related to capital, but TAAR has no bearing on ER and ER has no bearing on TAAR.
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Originally posted by Lance View PostExhibit A.....
Exhibit B... (well spotted JB I missed that)
As for B, I am happy to be corrected and the forum to become source of Facts rather than assumptions. Why dont you correct any misinformation with valid reference to external sources rather than attack
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Originally posted by Lance View PostExhibit A.....
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Originally posted by luxCon View PostWhat income tax?? Could you please be clear. A little information is far worse than no information
The worse case scenario the way I understand it is the difference between paying 10% ER tax on gains, or the worse option of paying 20% GCT if you started trading within 2 years.
Not having a dig at you, however definitely there are a few people on these threads that pass on a lot of nonsense as fact and the tone is somewhat aggressive supported by bitterness.
If you don't inform HMRC (with all the ethical implications of not doing so), they might contact you, at which stage you will have to go through an investigation. If TAAR applies, they'll want the different in liability + interest + penalties (which can be substantial).
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Originally posted by luxCon View PostThe worse case scenario the way I understand it is the difference between paying 10% ER tax on gains, or the worse option of paying 20% GCT if you started trading within 2 years.
The TAAR has nothing to do with ER, it is part of the TiS legislation and concerns the capital treatment of specified transactions. The ER is completely separate and is part of your SATR. So you will not default to CGT of 20% in the event that the TAAR is not met because there will be no capital treatment.
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Originally posted by luxCon View Postthere are a few people on these threads that pass on a lot of nonsense .....
Exhibit A.....
Originally posted by luxCon View PostNorthernlad, you seem to know everything. What if I collected all the invoices, and sent them all a day after the 2 years?? Wil that do the trick?
Originally posted by luxCon View PostThe worse case scenario the way I understand it is the difference between paying 10% ER tax on gains, or the worse option of paying 20% GCT if you started trading within 2 years.Last edited by Lance; 15 January 2021, 10:23.
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Originally posted by bcontractor View PostClearly going via an Umbrella company is not the most tax efficient way of contracting, but it might be the best of both world for two years.
People also keep forgetting that, if your situation changes, you have options. One of them being that if you decide to open an LTD again, you can inform HMRC and pay the income tax that you should've paid when you liquidated.
What income tax?? Could you please be clear. A little information is far worse than no information
The worse case scenario the way I understand it is the difference between paying 10% ER tax on gains, or the worse option of paying 20% GCT if you started trading within 2 years.
Not having a dig at you, however definitely there are a few people on these threads that pass on a lot of nonsense as fact and the tone is somewhat aggressive supported by bitterness.
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Clearly going via an Umbrella company is not the most tax efficient way of contracting, but it might be the best of both world for two years.
People also keep forgetting that, if your situation changes, you have options. One of them being that if you decide to open an LTD again, you can inform HMRC and pay the income tax that you should've paid when you liquidated.
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Originally posted by luxCon View PostNorthernlad, you seem to know everything. What if I collected all the invoices, and sent them all a day after the 2 years?? Wil that do the trick?
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Originally posted by luxCon View PostNorthernlad, you seem to know everything. What if I collected all the invoices, and sent them all a day after the 2 years?? Wil that do the trick?
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Originally posted by northernladuk View PostI'd imagine if you were forced inside 35 then you were inside all along so better you let the Ltd die and avoid being low hanging fruit for HMRC.
I called this situation Re shutting companies without thinking properly last year when we got the raft of questions from short sighted greedy people wanting their chunk of cash but not thinking beyond the end of their noses. People were gonna get caught out and there is no coming back. You MVL so you are done for two years. No fiddles or magic beans for this one. Guess it sorts the contractors out from the rest.
Northernlad, you seem to know everything. What if I collected all the invoices, and sent them all a day after the 2 years?? Wil that do the trick?
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