Hi everyone, sorry a newbie here! I've been contracting for almost two years and am looking to go perm. The HMRC rules say that the company has been trading for 2 years to claim ER, but how is trading defined? If the company is simply 'open' for two years does that qualify? If my contract dates are 1 Jan 2018 to 15 Dec 2019 (for example), and the company is closed a few weeks after (say 1 Jan 2020), is that a 2 year trading period? Thanks!
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Entrepreneurs relief - 2 years of trading
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A couple of guides mention a rule of thumb about 20% of time not doing the main activity will be a problem. This guide for example.
https://www.tolley.co.uk/__data/asse...urs_relief.pdf
But the best person to ask would be your accountant no?'CUK forum personality of 2011 - Winner - Yes really!!!! -
Originally posted by Sandy100 View PostHi everyone, sorry a newbie here! I've been contracting for almost two years and am looking to go perm. The HMRC rules say that the company has been trading for 2 years to claim ER, but how is trading defined? If the company is simply 'open' for two years does that qualify? If my contract dates are 1 Jan 2018 to 15 Dec 2019 (for example), and the company is closed a few weeks after (say 1 Jan 2020), is that a 2 year trading period? Thanks!
Your company must be actively trading for two years, as opposed to being open for two years.Comment
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Originally posted by Jess inniAccounts View PostHi Sandy
Your company must be actively trading for two years, as opposed to being open for two years.Comment
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