Limited Company Windup

[jamesearljones]

I am considering going down the process of closing down and going through the MVL to liquidate my limited company.

Is it fine for me to transfer my current contract over from my limited company to an umbrella company?

[Maslins]

I am considering going down the process of closing down and going through the MVL to liquidate my limited company.

Is it fine for me to transfer my current contract over from my limited company to an umbrella company?

I believe so. What do you anticipate doing slightly further down the line?

Ie if you transfer it to an umbrella, only to then transfer it to Newco Ltd a few months later, you may well be at risk of the transactions in securities anti avoidance legislation biting.

[northernladuk]

I believe so. What do you anticipate doing slightly further down the line?

Ie if you transfer it to an umbrella, only to then transfer it to Newco Ltd a few months later, you may well be at risk of the transactions in securities anti avoidance legislation biting.

Very much this. Shutting the old company down to gain tax advantages while continue to trade is opening yourself up to a world of trouble.

[jamesearljones]

I believe so. What do you anticipate doing slightly further down the line?

Ie if you transfer it to an umbrella, only to then transfer it to Newco Ltd a few months later, you may well be at risk of the transactions in securities anti avoidance legislation biting.

I'm likely to be leaving the UK for a couple of years after my current contract end and so wanted to finalise my limited company arrangements as soon as possible as it will take months.

Would transferring my current contract to an umbrella company constitute transactions in securities?

[Maslins]

I'm likely to be leaving the UK for a couple of years after my current contract end and so wanted to finalise my limited company arrangements as soon as possible as it will take months.

Would transferring my current contract to an umbrella company constitute transactions in securities?

I don't think see why it would.

[northernladuk]

I'm likely to be leaving the UK for a couple of years after my current contract end and so wanted to finalise my limited company arrangements as soon as possible as it will take months.

Would transferring my current contract to an umbrella company constitute transactions in securities?

It might not but if your move goes Pete Tong and you end up having to open another LTD after you could be in trouble.

[G@LindenAccounting]

I am considering going down the process of closing down and going through the MVL to liquidate my limited company.

Is it fine for me to transfer my current contract over from my limited company to an umbrella company?

You have to check with your client if they are happy to transfer existing contract to a third party.

To wind a company up you just submit a form to Companies House (DS01), pay £10 and everything will be done for you. Make sure that you have no contractual obligations which would prevent you from winding the company up.

Alternatively you can keep the company and submit dormant accounts and annual return every year and inform HMRC that the company is dormant. This might be beneficial for you if you want to return to the UK and carry on the same business with that company: the company will have history and this is usually better than a newco.

[Maslins]

To wind a company up you just submit a form to Companies House (DS01), pay £10 and everything will be done for you. Make sure that you have no contractual obligations which would prevent you from winding the company up.

Imagine the OP is aware...but the above does NOT get you the same tax treatment if there's >£25k net assets in the company.

[jamesbrown]

I don't think see why it would.

Incidentally, aren't there special rules on claiming ER when leaving the country in the same tax year?

[jamesearljones]

Imagine the OP is aware...but the above does NOT get you the same tax treatment if there's >£25k net assets in the company.

Hi Maslins, generally speaking do you find many cases where HMRC rejects ER for certain company windups presuming compliance with the law?