Anybody thinking of liquidating their Ltd co. already?

[Hobosapien]

Is there any evidence that lack of written evidence will increase the like hood of HMRC taking this approach. eg, from the Public Sector.

The "IR35 expert" at the agency advising my client on their IR35 approach told me that no (ie. absolutely zero) contractors were chased by HMRC when they moved from self-determined outside to Umbrella when IR35 was rolled out across the public sector. I took that with a pinch of salt, but he was adamant.

Going from the professionals that advise on such matters, presumably with real life cases to back up their advice (though not sure if we've had any details of such cases from affected contractors on here, so from the horse's mouth), the evidence needs to be available during any investigation so you can prove you did due diligence on either making the determination yourself (as in private sector currently) or a record of what evidence a client had to make their determination (as in public sector, and private sector relating to next April if all that goes ahead as proposed).

So for situations where the client is making the determination ask for at least an email giving the reasoning behind the determination with perhaps a copy of the CEST printout if they used that tool. If making the determination yourself, use a reputable third party to make the determination where they will provide written confirmation and they'll often stand by it in the form of insurance against the cost of an investigation.

Hopefully the liability of incorrect determinations made by clients means the risk of the contractor having to pay up any tax demands is much lower than situations where the contractor had full responsibility in making sure the determination was accurate, but don't go betting that hearsay and other word on the street type feedback will be accurate and remain that way. It's relatively easy to protect yourself for existing/future contracts, less so for old contracts where that horse may have long since bolted with any chance of getting proof of determination on its back.

[craigy1874]

In the light of IR35 next year it is by far the best to leave the LTD opened with no business for say 1-2 years. By this time it will be clear what is what and you will have generated say £8-16k loss which will be deducted next time you have turnover. And 90% of us will.
Win-win for you and f.uck HMRC.

This is 100% not true.

[northernladuk]

This is 100% not true.

We need to get admin to put that in his signature just in case any newbies accidently takes him seriously.

[Lance]

This is 100% not true.

95% not true.
If there is a likelehood of some genuine business through the LTD then keeping it open is good.
For most people (bum on seat, one client, permietractors) being forced inside by the client, closing the LTD is the best option.