Before I close my LTD down is there any other options for me

[2010]

Thank you

hi everyone,

thank you so much for all your replies, i am seeing my accountant next week to sort this out.

on a happier note :
**********************HAPPY NEW YEAR TO YOU ALL ...MAY LUCK AND FORTUNE FOLLOW YOU IN 2010!!!***********************************

Hip hip hooray!!!
Hip hip hooray!!!

[Troll]

? Why ?

So you build up client awareness of your Co's brand over 3 years then shut it down?

My first company ran for 10 years -probably like you I was immensely proud of it, & it even had a pukka company name !

It was formed way back when being a 'contractor' was an unusual thing to do, also having a young family meant it was a very serious step at the time. I recall discussing the formation with my wife and we both agreed that there would be no dodgy accounting and all taxes paid etc.

In year 5 it had attracted the attention of HMRC who conducted a PAYE review resulting in a demand for a ludicrous amount of unpaid tax; luckily the accountant reduced the amount to zero but suggested we pay a nominal amount as 'goodwill' so the berk from the revenue would not appear to be a complete moron.
This peeved me off somewhat as I said I always paid the taxes as and when due & the amount was trifling £200 for a supposed benefit in kind if I recall correctly but I paid up for a quiet life.

By year 8 the goalposts moved and IR35 came about and sure enough another PAYE review led to another steep demand with moron from revenue stating that things like accountants fees were not deductible and pretty well treating all expenses as not allowed.
As they could go back 8 years the demand was for serious amount of money but once again the accountant reduced to zero and I made certain this time no goodwill payment was made.
After conceding all the points the revenue then asked for copies of all the contracts and launched into an IR35 investigation. Fortunately I had taken insurance to cover this but the drawn out process of proving that I was not a disguised employee lasted 2 1/2 years.

I suppose you have to evaluate the risk of being on the revenues radar for so long - 10 years means there are 10 years of accounts to investigate & does that make you more of a target than a new company ( and I know of people who form a new company for each contract).

[FarmerPalmer]

If you are running a genuine business then make it dormant, if you are just using it to reduce your tax bill for disguised employment then close it.

My business was dormant for a number of years and started trading again just over 2 years ago.

[Alf W]

Hello everyone :-)

I ve been a contractor for 3 years, however i have been unable to get a contract in the last 9 months.

I dont know when ill get another contract ...so i dot know what to do with the LTD, should i declare it as dormant now ?

Or are there other options available to me that I dont know about ?

Any information or websites would be greatly appreciated

thank you

You can only make it dormant if it has been completely dormant since the start of your company year. Any salary, dividends or expenses during the year make it 'live' until the end of the year so you have to do all the accounts etc. After that, ask your accountant about entrepeneurs relief to get any remaining funds out of it as efficiently as possible.

Or, deregister for the FRS VAT thing and just use all the money to buy spurious toys for your house under the guise of 'valid business expenditure'.

[AtW]

? Why ?

So you build up client awareness of your Co's brand over 3 years then shut it down?

Because nobody walks over his bridge once people become aware of him.

HTH

[Durbs]

you should use it as disposable & certainly not let them run for more than 3 years.

? Why ?

So you build up client awareness of your Co's brand over 3 years then shut it down?

[AtW]

Shut it down... I don't know why some people become so attached to their companies; you should use it as disposable & certainly not let them run for more than 3 years.

SKA Inc is in its 6th year now.

[Troll]

Hello everyone :-)

I ve been a contractor for 3 years, however i have been unable to get a contract in the last 9 months.

I dont know when ill get another contract ...so i dot know what to do with the LTD, should i declare it as dormant now ?

Or are there other options available to me that I dont know about ?

Any information or websites would be greatly appreciated

thank you

Shut it down... I don't know why some people become so attached to their companies; you should use it as disposable & certainly not let them run for more than 3 years.


HTH & 2010 is better for you

[Zippy]

Happy New Year 2010

I'd post this query in Accounting/Legal if I were you - you might get some sensible answers in there. General is full of grumpy, hungover people today

[2010]

Hello everyone :-)

I ve been a contractor for 3 years, however i have been unable to get a contract in the last 9 months.

I dont know when ill get another contract ...so i dot know what to do with the LTD, should i declare it as dormant now ?

Or are there other options available to me that I dont know about ?

Any information or websites would be greatly appreciated

thank you