revive dormant or start new LTD?

[ASB]

I will close the old one if I start a new co

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Once successfully struck off that should draw a line under the tax affairs of the company. Hmrc is very unlikely to reopen the co to investigate. That should relieve ir35 worries. There is some chance that hmr object to the striking off and investigate.

[Zero Liability]

Huh? Only 80% take home. You can get that with a LTD company. Or did you do this because you considered yourself IR35 caught?

I would think it depends on the day rates, and also once VAT is factored in, it'll be something less than 80%, although pretty close.

[bourneagain]

It is not clear if your intent is to keep old co even if you commence operations through new co.

As it stands old co is a valid target for hmrc due to its existence. I am not asessing likely, merely possible.

I will close the old one if I start a new co

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[bourneagain]

Huh? Only 80% take home. You can get that with a LTD company. Or did you do this because you considered yourself IR35 caught?

I think it's closer to 83% or something. The most I got out of Ltd was in the region of 75% but annually that wasn't being good with the running like I previously mentioned

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[Wanderer]

I was moving to a loan based, 80% take home fantasy scheme.

Huh? Only 80% take home. You can get that with a LTD company. Or did you do this because you considered yourself IR35 caught?

[ASB]

It is not clear if your intent is to keep old co even if you commence operations through new co.

As it stands old co is a valid target for hmrc due to its existence. I am not asessing likely, merely possible.

[bourneagain]

Well the company was kept dormant as I was moving to a loan based, 80% take home fantasy scheme. I wanted a quick backup in case that route went belly up eg. 6 months in and something smells fishy, I revive the company and invoice the next possible time worked under the old Ltd to avoid like company disappearing with my money etc

It's been couple of years now. I pay the accountant a small fee for the upkeep of the dormant company namely going nil VAT returns etc...

Northernlad raised my precise point. I am in Hector's shoot to kill list at the moment. We'll see how that goes. But clearly they are questioning one of my previous returns under that scheme so I don't want to continue operating that way even if it turns out to be one that hector, actually, can't bring down.

The upside of starting a new company is the following. I don't think I looked after my company properly. I declare myself outside IR35 but I wasn't strict about applying that to my day to day role. Worst case scenario if that ever gets picked up by hector for ir35 it could possibly go against me. If it does then I suspect they would come after everything that company traded including what I decide to trade in 2014, should I decide to keep the company. If i started fresh, I would in essence keep the damage of the bad years ring fenced if that makes sense?

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[ASB]

What's the point in keeping a dormant company if you're just going to start a new one?

I doubt it makes any difference. Do you like the name? If so keep it, if not don't.

Not really relevant but myco was dissolved a few years ago. A new one has now been incorporated in the same name. Entirely legit of course, but mildly frustrating since I have a plan requiring a company and planned to set one up with the same name.

[VectraMan]

What's the point in keeping a dormant company if you're just going to start a new one?

I doubt it makes any difference. Do you like the name? If so keep it, if not don't.

[Clare@InTouch]

Won't closing a LTD and opening a new one so close after raise some eyebrows at HMRC even if it is legitimate?

Only if you're gaining from a tax point of view, which you normally associate with a phoenix company. I was guessing from the OP that the old company had been dormant for some time, in which case I don't think it would odd to start a new company.

[TykeMerc]

I assume you kept it dormant and did the paperwork rather than closing it for a reason, unless there's a reason to bin it now and start a new one I'd revert it to active.

[northernladuk]

Won't closing a LTD and opening a new one so close after raise some eyebrows at HMRC even if it is legitimate?

[Clare@InTouch]

It's entirely up to you, but if you're after a fresh start then it would make sense to start a new company. These days it's not expensive or time consuming to start a new company.

There will be costs in closing down the old one, and potential tax implications if there are retained funds. You could keep it open if you prefer of course, no need to close it unless you want rid of it.

[bourneagain]

i used to operate as LTD until i switched to an ebt/loan type scheme. it was clearly too good to be true and surprise surprise, it is now under heat so i need out. decided to go back to LTD.

the company was kept dormant at the time. wondering if it's better to revive to company and start trading again or start a new ltd given that hector is breathing on me right now. need to expand the war chest in case hector and his cronies come for it.