Sajid Javid set to curb ‘entrepreneurs relief’ in Budget

[jamesbrown]

My accountant says ER applicability isn't based on when you appoint a liquidator - it's based on when your money is extracted from the company. So appointing a liquidator before April 6th to avoid missing ER won't work.

I think you're missing the point. We're speculating about what the qualifying event might be if they decide to enact this change immediately. Is it distributions before the budget date? Is it the appointment of a liquidator before the start of the new tax year? Is it something else? The gov't can decide on any event they want - we're talking about new legislation (or application pending that).

Personally, I think it will go ahead, the full removal. The Tories do have an MO for dead-catting these sort of changes, but this Tory gov't is very different from the last and it fits perfectly with their agenda of slapping rich southerners.

[heyya99]

I think you're missing the point. We're speculating about what the qualifying event might be if they decide to enact this change immediately. Is it distributions before the budget date? Is it the appointment of a liquidator before the start of the new tax year? Is it something else? The gov't can decide on any event they want - we're talking about new legislation (or application pending that).

Personally, I think it will go ahead, the full removal. The Tories do have an MO for dead-catting these sort of changes, but this Tory gov't is very different from the last and it fits perfectly with their agenda of slapping rich southerners.

I get you.

Liquidation evokes the image of a melting Easter egg for me.

[mikedarv]

The liquidator should make it fairly clear at what stage they're legally appointed. Basically it will be a set of board minutes that the director/shareholder(s) sign, so yes, "general members meeting" sounds like the same thing. With our process it's on completion of step 4 here. Prior to that, yes, you can stop it, but only because in reality prior to that you haven't started it.

I'm at a bit of a loss as to what to do now, especially with this 11th March budget date coming up that may or may not mean anything.

My Ltd company is most likely going to be trading right up to the end of March, is it even possible to appoint a liquidator prior to 11th March then cease trading and start drawing up final accounts etc. after?

I will either be in Umbrella or Permanent work from April so assume MVL is the right way to go rather than keeping the Ltd dormant and withdrawing dividends that will be subject to standard self-assessment.

Edit: just seen the below as I posted

My accountant says ER applicability isn't based on when you appoint a liquidator - it's based on when your money is extracted from the company. So appointing a liquidator before April 6th to avoid missing ER won't work.

Again too hard to know what way it is going until mid March but by then it might be too late to act

[heyya99]

I'm at a bit of a loss as to what to do now, especially with this 11th March budget date coming up that may or may not mean anything.

My Ltd company is most likely going to be trading right up to the end of March, is it even possible to appoint a liquidator prior to 11th March then cease trading and start drawing up final accounts etc. after?

I will either be in Umbrella or Permanent work from April so assume MVL is the right way to go rather than keeping the Ltd dormant and withdrawing dividends that will be subject to standard self-assessment.

Edit: just seen the below as I posted



Again too hard to know what way it is going until mid March but by then it might be too late to act

I'm in the same boat. I've spent the day mourning ER and hence 10's of K's so it anything other that complete abolition from April 6th is a bonus.

[Maslins]

My Ltd company is most likely going to be trading right up to the end of March, is it even possible to appoint a liquidator prior to 11th March then cease trading and start drawing up final accounts etc. after?

It is possible, though be aware it'll rule out most of the online/low cost liquidators who need your accounting/tax affairs to all be tidied up before they get involved. Remember by appointing a liquidator you're signing over control of the company to them. Your company bank account will be frozen, so your client would likely not be able to pay your old company bank account, but instead make payments to the liquidator. It's a bit of a pain to say the least!

[MrContractor85]

I'm in the same boat. I've spent the day mourning ER and hence 10's of K's so it anything other that complete abolition from April 6th is a bonus.

Hmmmmm I think it would extremely unfair if MVLs that commenced prior to March 11th were unable to make use of ETR. Final distributions can take approx. 6m from start to finish so someone who kicked off proceedings in September could still conceivably fall foul of this new legislation

[GhostofTarbera]

I'm in the same boat. I've spent the day mourning ER and hence 10's of K's so it anything other that complete abolition from April 6th is a bonus.

On the bright side you have probably lost more in your pension pot in the last 8 days than you have lost in your ER tax change


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[jamesbrown]

On the bright side you have probably lost more in your pension pot in the last 8 days than you have lost in your ER tax change


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Who is stupid enough to have a pension?

[GhostofTarbera]

Who is stupid enough to have a pension?

Indeed Ponzi schemes


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[ChairmanMeow]

I spoke to my accountant today and the concensus is that it won't be completely abolished, however there will be some changes. Reduction to the lifetime limit, adjustment of the ER discount etc.

They also suggested that I am too late to close the company and take advantage of ER in this tax year.

So it looks like I will have to see what the 11th of March brings....

Roll the dice!!