Playing devils advocate, when people close and go permie that is deemed acceptable, what difference is there between a permie and an umbrella?
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is it legitimate to close ltd & use umbrella
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Originally posted by Stevie Wonder BoyI can't see any way to do it can you please advise?
I want my account deleted and all of my information removed, I want to invoke my right to be forgotten. -
Originally posted by SimonMac View PostPlaying devils advocate, when people close and go permie that is deemed acceptable, what difference is there between a permie and an umbrella?The greatest trick the devil ever pulled was convincing the world that he didn't existComment
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Originally posted by SimonMac View PostPlaying devils advocate, when people close and go permie that is deemed acceptable, what difference is there between a permie and an umbrella?
I guess it could be argued that permie and umbrella were different in this situation. I accept that from the perspective of the worker, permie and umbrella are similar, and Ltd Co very different. However from the end client's perspective, a permie is an integral key part of the time, who gets a salary, employee benefits etc. An umbrella worker is a contractor, negligibly different to a Ltd Co contractor, just that they pay the invoice of a big organisation rather than multiple individuals.
As others have suggested above, nobody's view is really any more/less valid than anyone elses. I would've thought both are quite safe (yes some might argue I'm biased...but I try not to be). I'm aware many others don't share my view.
Disappointing that there continues to be new tax rules that are so open to interpretation.Comment
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Originally posted by LondonManc View PostI don't see the point of asking on here if you have had advice from a professional contracting accountancy company.
But it's an accountancy / legal forum so whatever the O/P's reason the question is on topic...
BooComment
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Originally posted by dkldn View PostIs it legitimate to close ltd & use umbrella so that to cash out the lump sum on ltd company bank account?
It all seems to be a grey area. Do we have any updated advice on this?
Many Thanks in advance.Comment
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Originally posted by NickX View PostI am also trying to establish whether it would be ok to close a Limited Co using an MVL and claim Entrepreneurs Relief but then work on a PAYE basis through an umbrella company.
It all seems to be a grey area. Do we have any updated advice on this?
Many Thanks in advance.Comment
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Originally posted by Maslins View PostOne update to my post from ~16 months ago is that since then HMRC did basically clarify that someone going permie would be safe. I would have thought umbrella was safe too...but as you can see from earlier in this thread, the rules are indeed grey and not everyone agrees how they'd be interpreted.Comment
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Tax expert advice on subject
I am also trying to establish whether it would be ok to close a Limited Co using an MVL and claim Entrepreneurs Relief but then work on a PAYE basis through an umbrella company.
I’m sure you can do this BUT will Hmrc come after you to pay additional tax 35% on top of the 10% ER tax paid on the funds you released from your ltd company?
It all seems to be a grey area. Do we have any updated advice on this?
Many Thanks in advance.Comment
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Don't forget you've stuffed your long terms plans if you close the company and benefit form a sweet tax deal. You can't Re open another within 2 years so if the inside gig goes tits up in 2 months you are stuck with brolly even if the next gig is outside.
We've at least one example of this happening already.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by Jgltd View PostI am also trying to establish whether it would be ok to close a Limited Co using an MVL and claim Entrepreneurs Relief but then work on a PAYE basis through an umbrella company.
I’m sure you can do this BUT will Hmrc come after you to pay additional tax 35% on top of the 10% ER tax paid on the funds you released from your ltd company?
It all seems to be a grey area. Do we have any updated advice on this?
Many Thanks in advance.
As NLUK says, you do potentially limit your future options though.See You Next TuesdayComment
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