2 year rule after closing down Ltd Company

[ladymuck]

But is it really the Liquidators responsibility to have to explain rules like this? I mean yes, maybe have it in the blurb somewhere in the FAQs but that's about it. Anyone competent enough to run their own Ltd Co should be prepared well enough to know some of the more complex legal and tax implications of their actions.

That is a fair point. I suppose I was thinking that if you're engaging with a professional firm to close your business down that they would advise on the pros and cons of that course of action. However, if you look at it from the other side - you've decided closing down is the way to go - then the assumption that you've done your homework before reaching that conclusion is a reasonable expectation.

[ChimpMaster]

This question comes up a lot and it makes me wonder if the liquidators are doing a really bad job of explaining the phoenixing rules to people?

But is it really the Liquidators responsibility to have to explain rules like this? I mean yes, maybe have it in the blurb somewhere in the FAQs but that's about it. Anyone competent enough to run their own Ltd Co should be prepared well enough to know some of the more complex legal and tax implications of their actions.

When I contracted I did so much research that I felt I became a tax expert! I ran 2 companies side by side (IT and property), used inter-company loans, MVL'd, claimed ER/BADR, created a huge directors loan repayable to me over many years etc. Looked into creating a Holding Co structure to transfer dividends tax-free to Property Co but didn't need that in the end.

There's so much one can do with companies, and unless you're rich enough to pay for experts you have to research and learn yourself. The IT work was simply a means to an end. You have to manage the business first and foremost, with the end in mind.

BTW it's been more than 2 years since I MVL'd. Anyone got a contract they can give me?

[northernladuk]

This question comes up a lot and it makes me wonder if the liquidators are doing a really bad job of explaining the phoenixing rules to people?

Bearing in mind the number of contractors we've seen carrying out ill thought out knee jerk MVL's and then having to look closely at the rules as to when to they can re-open companies I know where I'd be placing most of the blame.

[ladymuck]

This question comes up a lot and it makes me wonder if the liquidators are doing a really bad job of explaining the phoenixing rules to people?

[jamesbrown]

Neither. It starts from the date each distribution is paid. In other words, if you had more than one distribution, there are two (or more) separate dates.

[ACBIRD]

I have closed down my limited company using an MVL and so apparently cannot work as a limited company director in the same field for 2 years. Instead of the expected 6 months HMRC dragged their bits out and it ended up taking 18 months.

My question is does the 2 year period start when the MVL was initiated in Feb 2021 or from the day companies house officially dissolved the company in Aug 2022 ?

Thanks