Close and Reopen a New Ltd

[Henrik67]

Hi

Asking for a friend. I have been told that to separate oneself from any potential investigation re previous historical engagements (that did have IR35 contract reviews passed) it is recommended to close your ltd company and create a new one - there would be no tax advantage to this so isn't phoenixing, I don't think

Waste of time or valid approach? It's probably overthinking and belt n braces...

Thanks
Martin

[LondonManc]

Hi

Asking for a friend. I have been told that to separate oneself from any potential investigation re previous historical engagements (that did have IR35 contract reviews passed) it is recommended to close your ltd company and create a new one - there would be no tax advantage to this so isn't phoenixing, I don't think

Waste of time or valid approach? It's probably overthinking and belt n braces...

Thanks
Martin

Why is there no tax advantage?

[ladymuck]

Why is there no tax advantage?

Because obviously avoiding IR35 means ...

Oh...

[LondonManc]

Because obviously avoiding IR35 means ...

Oh...

I was thinking more of the VAT advantages from opening a new company.

If you passed previous reviews then there isn't an issue. Keep your evidence and keep going.
It's more of an issue if you haven't got any evidence of being treated as a contractor or failed a review and ignored it. Or rather, if your friend did....

[Henrik67]

Because obviously avoiding IR35 means ...

Oh...

Yeah avoiding being classed as inside is defo a tax advantage

[Henrik67]

Why is there no tax advantage?

I meant it wouldn't be done as a MVL, no personal or corp tax savings...

[LondonManc]

I meant it wouldn't be done as a MVL, no personal or corp tax savings...

Is this related to your friend's QDOS review failing by any chance?

[Henrik67]

Is this related to your friend's QDOS review failing by any chance?

No, that wasn't my friend that was me Independent things... I am just starting this gig and dont get paid till Aug so plenty of time to work out tax status - I have tried as hard as I can to get a Polish agency to include some IR35 friendly items in the contract....

[LondonManc]

No, that wasn't my friend that was me Independent things... I am just starting this gig and dont get paid till Aug so plenty of time to work out tax status - I have tried as hard as I can to get a Polish agency to include some IR35 friendly items in the contract....

Just ask QDOS what the substitution notice period required is to pass the review. I'm surprised that they haven't suggested the amendment.

[TheDogsNads]

Hi

Asking for a friend. I have been told that to separate oneself from any potential investigation re previous historical engagements (that did have IR35 contract reviews passed) it is recommended to close your ltd company and create a new one - there would be no tax advantage to this so isn't phoenixing, I don't think

Waste of time or valid approach? It's probably overthinking and belt n braces...

Thanks
Martin

Be aware that HMRC have the chance to object to the closing of any limited co before it is actually closed. So...........