Closing company and going umbrella with same end client Closing company and going umbrella with same end client - Page 3
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  1. #21

    Fingers like lightning


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    Jul 2019
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    Quote Originally Posted by cjping View Post
    Coming back to this old thread.... I've been offered a permanent role, same client, with such a great package that I'd be mad to turn down. Given that there are no employees doing the same role as me, and never have been, if I were to take the permanent role and close the company down would that put me at risk of being clobbered as inside IR35 for the time contracting previously?
    Yes, that risk is always there. The thing you need to measure is: how likely are HMRC to come calling?

    From your description, that sounds unlikely based on the role alone, but who's to know that you won't do something in the next 6 years that means HRMC look into your affairs...

    How long were have you been contracting there for? I'd be working out the potential lax liability, were all of that time retrospectively declared inside, and make my decision based on that.

  2. #22

    Still gathering requirements...


    Join Date
    Apr 2016
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    Why did you want to close the company if you're outside? Best to keep it running.

  3. #23

    Nervous Newbie


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    Nov 2019
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    Quote Originally Posted by genius View Post
    Why did you want to close the company if you're outside? Best to keep it running.
    Primarily to get the money out of the company and get ER on it. I don't see contracting has a long term future, for me anyway. So ultimately I would end up going perm somewhere.

  4. #24

    More time posting than coding


    Join Date
    Mar 2016
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    257

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    Quote Originally Posted by TheCyclingProgrammer View Post
    Why not? The TAAR applies to any capital distribution if all the tests are met - I don't remember there a "as long as its over £25k" rule. A capital distribution of £25k would still yield a decent tax saving versus dividends if you're a higher rate tax payer and are eligible for ER due to the CGT allowance and 10% CGT rate.
    The TAAR only applies to liquidations, if you close down with < £25k you are not liquidating the company, hence the TAAR doesn't apply.

    You will find it in the legislation, I am not going to try and find it again and post it here.

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