Going umbrella after MVL

[Maslins]

Are we saying that MVL might carry risks /may not apply if someone plans to close their Ltd and move to a brolly?

Having never looked into it, my uninformed assumption was always that as long as you didn't set up a new ltd (phoenix) this might not raise any questions.

I think most would agree with you...though HMRC have made it clear (for example) liquidating a Ltd Co then setting up a sole trader business doing the same thing would be caught.

The problem is the wording is very vague. It talks about doing a similar trade or activity. HMRC have specifically stated (for example) liquidating an IT consulting Ltd Co to then take on a permanent job as an IT consultant would not be caught (barring some convoluted situations). They didn't specifically comment re umbrella.

Some people may argue umbrella is more like contracting than a permanent role, as can often be short term gigs, perhaps to do a specific project etc. However others will argue as legally you're an employee, taxed as an employee, it'd be safe. I fall into the latter camp, but that's just my opinion.

[Crossroads]

Thread bump...

Are there any newer thoughts/opinions on the Umbrella-after-MVL scenario?

I'm mid-MVL after landing a pretty good permanent role. However as I'm approaching 6 months in the commute is grinding me down and the company culture/WFH options aren't going to be flexible enough I don't think (I'm going to ask the question but I suspect I'll be looking for something new).

I'm thinking that part time work/breaks between projects is what I need, otherwise I'm just going to retire early (could just about afford it), would be good to know if umbrella is a safe option or not.


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[Amanensia]

I recently took advice on this from my own accountant, and from a friend who is a tax partner in a major UK accountancy firm. Both were of the strong opinion that MVL -> Umbrella is absolutely no problem. As it turns out I didn't need to take advantage of this as several large clients in my field are routinely deeming their contractors (at least those in my fairly specific niche) outside IR35, but I would have had no concerns going MVL -> Umbrella if that hadn't been the case.

[cojak]

I recently took advice on this from my own accountant, and from a friend who is a tax partner in a major UK accountancy firm. Both were of the strong opinion that MVL -> Umbrella is absolutely no problem. As it turns out I didn't need to take advantage of this as several large clients in my field are routinely deeming their contractors (at least those in my fairly specific niche) outside IR35, but I would have had no concerns going MVL -> Umbrella if that hadn't been the case.

I completely agree with this.

[ChimpMaster]

I recently took advice on this from my own accountant, and from a friend who is a tax partner in a major UK accountancy firm. Both were of the strong opinion that MVL -> Umbrella is absolutely no problem. As it turns out I didn't need to take advantage of this as several large clients in my field are routinely deeming their contractors (at least those in my fairly specific niche) outside IR35, but I would have had no concerns going MVL -> Umbrella if that hadn't been the case.

How about MVL and into Umbrella whilst still at the same client?

[Amanensia]

Client is irrelevant. The point is you've gone from being a business owner, to a simple employee of a firm in which you have no ownership interest.

Might or might not be irrelevant for IR35 purposes, but that's an entirely different matter.