Originally posted by willendure
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Previously on "Why are umbrella companies being required more often?"
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Originally posted by northernladuk View PostAm I the only one that thinks there is a can of worms to be opening here. If only we could ask the OP and get enough facts to discuss...
But then we aren't bothered. OP has the answer to his question.
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Am I the only one that thinks there is a can of worms to be opening here. If only we could ask the OP and get enough facts to discuss...
But then we aren't bothered. OP has the answer to his question.
Leave a comment:
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Originally posted by eek View PostWhich equally is a mistake - one of the best tricks you could do was put the property in your SIPP so the company is paying rent directly into your pension fund.
I think I might look into this again - as you say it would be a decent asset plus rent going into my pension.
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Originally posted by malvolio View PostAgreed. And the first question is who's name is it in...?
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Originally posted by eek View PostThe mortgage makes things rather more complex than would otherwise be the case.
yeah. You can't do an MVL when there are creditors.
Standard business practise in the UK would be to stop paying the mortgage and then the bank will wind the company for you. I'm not saying this is good practise but it is common.
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Originally posted by Lance View PostAssuming the office is a reasonably high-valued asset, you want to talk to an MVL specialist. They will be able to liquidate your company and free the assets. The transfer of the office toy yourself will simply be a paper purchase where you buy the office from the company and then take the money back at liquidation.
It needs doing right so get a specialist.
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Originally posted by willendure View PostFair enough regarding comments about it not being allowable expense.
I think the only way to keep the Ltd and office going will be to pay rent to the Ltd myself, out of taxed salary. Longer term, work out how to close the Ltd down and transfer ownership of the building to myself.
It needs doing right so get a specialist.
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Originally posted by TheDogsNads View PostErm, if your contract is deemed inside IR35, there are effectively no 'expenses' such as mortgage, heating etc your company can claim.
Determining IR35 status means there are less limited contractor companies able to write neferious expenses off to tax while also meaning a bigger tax take for HMRC at source. Pay up first and we'll argue later in effect.
What am I missing here?
Instead they treat it as a tax mitigation device, often with unrealistic ideas over what is and isn't allowable.
And that's why we have IR35 and all the other limitations on how we make our living.
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Fair enough regarding comments about it not being allowable expense.
I think the only way to keep the Ltd and office going will be to pay rent to the Ltd myself, out of taxed salary. Longer term, work out how to close the Ltd down and transfer ownership of the building to myself.
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Originally posted by willendure View PostMakes sense. If my Ltd. doesn't pay the right taxes, agency or even client is on the hook.
My specific problem is... my Ltd. own its own office building on which it pays a mortgage, heating, electricity, insurance, repairs, computers, internet/phone etc. So I need money coming through the Ltd. to cover all these expenses. I would like to remain outside IR35 and operate as a genuine business, but if there will be no possibility of finding a contract that would allow this after April, things are a bit screwed for the Ltd.
Perhaps I could pay my Ltd. rent on the office...
Or else I am going to have to wind the Ltd. down and transfer the assets to myself, which will no doubt incur a big fat tax bill (and repaying of the mortgage).
Determining IR35 status means there are less limited contractor companies able to write neferious expenses off to tax while also meaning a bigger tax take for HMRC at source. Pay up first and we'll argue later in effect.
What am I missing here?
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