Reply to: Closing LTD Company in April 2020, and start new LTD for client determined contracts

[northernladuk]

I know the horse has bolted for most people but when I was looking at insurance last month Kingsbridge claimed they have a superior policy because they will cover a legal challenge regardless of the chances of success. Different courts on a different day can make different decisions after hearing different arguments. Let's hope they get a fair opportunity.

They might have done back in the day when it was money for old rope. Now they are potentially shouldering the liability of every single contractor not in an outside gig they might be changing their policies... If that is even legal. Very brave to stand by that.

[northernladuk]

I wonder if closing and then opening a company by the same director flags things up for a potential investigation?

Depends.

[stchez]

Yep, but my plan to close and open seems good right?

I wonder if closing and then opening a company by the same director flags things up for a potential investigation?

[mb31]

No. If QDOS lose the first one and HMRC use the same argument across the board QDOS will use the clause saying they won't defend when there is no real prospect of winning. They've been very smart.

I know the horse has bolted for most people but when I was looking at insurance last month Kingsbridge claimed they have a superior policy because they will cover a legal challenge regardless of the chances of success. Different courts on a different day can make different decisions after hearing different arguments. Let's hope they get a fair opportunity.

[northernladuk]

Perhaps if the insurance company goes bust the you're screwed.

If HMRC decides to go after everyone, it will be easier for QDOS to hit and run than to compensate all contractors affected.

Sent from my SM-G935F using Contractor UK Forum mobile app

No. If QDOS lose the first one and HMRC use the same argument across the board QDOS will use the clause saying they won't defend when there is no real prospect of winning. They've been very smart.

[Syd]

Why not just pay the 300 quid a year for ir35 insurance and have done with it...

Perhaps if the insurance company goes bust the you're screwed.

If HMRC decides to go after everyone, it will be easier for QDOS to hit and run than to compensate all contractors affected.

Sent from my SM-G935F using Contractor UK Forum mobile app

[fidot]

Why not just pay the 300 quid a year for ir35 insurance and have done with it...

This is something I silently wonder about most posts on these forums.

If clients deem one inside then what do you expect the insurance to do? Further, there won't be any money to pay for insurance since it will have been deducted at source

[FIERCE TANK BATTLE]

Why not just pay the 300 quid a year for ir35 insurance and have done with it...

This is something I silently wonder about most posts on these forums.

[craigy1874]

I've seen this said a few times. Assuming payments are made from retained profit.
However, there isnt a problem making a trading loss due to salary, is there?
Then, all the salary can be salary sacrificed no?

Exactly. I wonder if these 'accountants' would have the same problem if it was a large bonus being paid rather than a pension contribution. Of course they wouldn't - which proves they don't know what they are talking about in the first place!

[craigy1874]

Careful with this, my accountant recommended not incurring a trading loss due to (large) pension contributions.

Your accountant needs to rethink things then. Heard this absolute nonsense a few times.

[fidot]

Careful with this, my accountant recommended not incurring a trading loss due to (large) pension contributions.

I've seen this said a few times. Assuming payments are made from retained profit.
However, there isnt a problem making a trading loss due to salary, is there?
Then, all the salary can be salary sacrificed no?

[adubya]

Not so. If the contribution is made by your company, they can pay the full £40k per year even if you had no earnings at all.

Careful with this, my accountant recommended not incurring a trading loss due to (large) pension contributions.

[craigy1874]

You can't close down your company then start up another one doing the same type of work within 2 years. Look up 'phoenixing'.

I think you should look it up!

[ChimpMaster]

The best advice given to you here is to go and speak with an accountant. Stick with that.

[northernladuk]

You can't close down your company then start up another one doing the same type of work within 2 years. Look up 'phoenixing'.

Only if you've gained some tax advantage from the old one.