Hi all ... I closed a one-man tech consulting business (SIC: 62020) using an MVL and got Entrepreneurs Relief (ER). Under TAAR, I am not allowed to work in the same or similar trade for 2 years, else I lose my ER. I now want to co-found a new business in application service provisioning (SIC: 63110). I need to understand if this will be considered sufficiently different so as not invoke condition C of TAAR, so I can retain my ER
Can anyone help me understand how HMRC would define “similar” in this case. I have read that HMRC might want to label all business in the IT sector as being ‘similar’ whereas I think it quite reasonable to define a consulting business as being very different to a software / application provider business (my new business will do no consulting, we would only sell licenses to use to the software we have written). I can see that "reasonable self assessment" applies to condition D, but can’t see who decides on condition C, or how
Any thoughts / experience here, please?
Can anyone help me understand how HMRC would define “similar” in this case. I have read that HMRC might want to label all business in the IT sector as being ‘similar’ whereas I think it quite reasonable to define a consulting business as being very different to a software / application provider business (my new business will do no consulting, we would only sell licenses to use to the software we have written). I can see that "reasonable self assessment" applies to condition D, but can’t see who decides on condition C, or how
Any thoughts / experience here, please?
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