Closed company last year due to IR35. Any issues creating another Ltd so soon?

[northernladuk]

Yes I researched the options before closing - fair points.

Yep I figured from your posting history you'd have done it properly. Many don't.

[Peoplesoft bloke]

Yes I researched the options before closing - fair points.

[northernladuk]

Unfair generalisation. I was contracting outside and I am 100% sure I met all of the criteria. Amongst other things, although I know these aren't the whole story, I was contracting for multiple clients simultaneously, working on clearly defined projects with risk and restitution at my own cost. I was even doing work billing in US dollars for a US client.
Then covid killed the US work, and IR35 killed the UK stuff. There has been a total PSC ban in my sector. You may be familiar with offpayroll.org and their daily listings of outside gigs - there have been 2 listed in the last 2 years for my skillset.
I have gone PAYE, but doing a very different role and at a place I have never previously worked at, mainly because I did need some income and also because I wasn't prepared to go inside IR35.
I wasn't a permietractor by any means - but I did get wiped out by IR35.

But when you closed your LTD did you do the research on the implications of doing so so understood the future? I'll bet you did. So many people just kneejerk shut their LTD's without so much of a thought of what could happen in the future. We saw them all on here asking how to close companies and now we are starting to see them coming back asking what to do now. Some of them are now stuck in outside gigs working through a brolly because they MVL'd and can't open another one. Very costly mistake indeed.

We know the group ensignia is talking about, we saw them asking how to close the LTD a week in to their new inside gig and we see them now asking if they are allowed to open another because they didn't think it through.

[Peoplesoft bloke]

Permietractor mentality. Seen it happen with 100s of my previous contractor "colleagues"; virtually all closed their companies and are PAYE or perm now.

And people wonder why IR35 legislation came in...

Unfair generalisation. I was contracting outside and I am 100% sure I met all of the criteria. Amongst other things, although I know these aren't the whole story, I was contracting for multiple clients simultaneously, working on clearly defined projects with risk and restitution at my own cost. I was even doing work billing in US dollars for a US client.
Then covid killed the US work, and IR35 killed the UK stuff. There has been a total PSC ban in my sector. You may be familiar with offpayroll.org and their daily listings of outside gigs - there have been 2 listed in the last 2 years for my skillset.
I have gone PAYE, but doing a very different role and at a place I have never previously worked at, mainly because I did need some income and also because I wasn't prepared to go inside IR35.
I wasn't a permietractor by any means - but I did get wiped out by IR35.

[Grah]

Did you formally liquidate (MVL) the old company with more than £25k as a capital distribution or just strike it off with less than £25k (DS01)? If the former, yes, there are "issues". If not, no problem, you can open and close companies at will (i.e., just not for tax avoidance purposes).

Latter definitely.

Thanks for all the constructive replies.

[Grah]

And you would be wrong.

I have had four inside gigs since March 2020. I originally came to the conclusion that the desired effect of the legislation - to get rid of single worker limited companies in favour of great big consultancies - had worked. There were very few contracts generally and almost none outside IR35. I thought the proposition was dead.

Yes, I know there have been some people who have been lucky enough to have stayed outside. Good for them. I am sure you two mean well and weren't taking the opportunity to score easy 'I am a smug git' points.

[northernladuk]

Permietractor mentality. Seen it happen with 100s of my previous contractor "colleagues"; virtually all closed their companies and are PAYE or perm now.

And people wonder why IR35 legislation came in...

And I'd have to agree with this. One inside IR35 gig and they bail out. Just using the LTD as a tick box and not being a contractor.

[ensignia]

I had been running a Ltd for ~8 years but IR35 seemed to kill any chance of getting outside IR35 contracts and then covid just sealed the deal so I closed the company last January.

Permietractor mentality. Seen it happen with 100s of my previous contractor "colleagues"; virtually all closed their companies and are PAYE or perm now.

And people wonder why IR35 legislation came in...

[jamesbrown]

Did you formally liquidate (MVL) the old company with more than £25k as a capital distribution or just strike it off with less than £25k (DS01)? If the former, yes, there are "issues". If not, no problem, you can open and close companies at will (i.e., just not for tax avoidance purposes).

[eek]

In principle, no issue. I opened a Ltd Co specifically for a post retirement side hustle job, then closed it after around a year when the work was done. Took me just a few minutes to register the new company on Companies House website. Recieved the incorporation certificate and standard articles as pdf within about 20 minutes of completing the registration. It's never been easier.

At the moment it's actually too easy - so make the most of it while you can as I suspect company registration will become harder in an attempt to resolve issues with dodgy company registrations.

[Fred Bloggs]

In principle, no issue. I opened a Ltd Co specifically for a post retirement side hustle job, then closed it after around a year when the work was done. Took me just a few minutes to register the new company on Companies House website. Recieved the incorporation certificate and standard articles as pdf within about 20 minutes of completing the registration. It's never been easier.

[northernladuk]

Depends how you closed it. Read this thread. It's someone in exactly the same situation as you so should answer your question but also has all the links around when you can and when you can't start a new company so you will understand why.

https://forums.contractoruk.com/ir35...g-2-years.html

[Grah]

I had been running a Ltd for ~8 years but IR35 seemed to kill any chance of getting outside IR35 contracts and then covid just sealed the deal so I closed the company last January. I have been with an umbrella since March 2020 but might have a lead on an outside IR35 contract again. Can I create a new Ltd so soon? Any issues to consider? Should I use a different company name?