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MVL, then Brolly question....

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    MVL, then Brolly question....

    Just a thought...

    As I have no T/S etc expenses hardly at the moment, working 4 miles from home, and in view of the Div tax etc, is it worth me MVL'ing, I have a fair warchest, going brolly after that, reassigning contract etc?

    Obvs I can't ask my accountant as I would effectively be sacking him....

    I ask cos I am company-wise fairly rich and personally fukn skint at most effective sal/div drawings and with three kids at uni, etc....

    #2
    You need to be MVL'ing soon as changes are mooted for the budget. Regards the brolly, well, you'd be their employee, so I do not see a problem.
    Public Service Posting by the BBC - Bloggs Bulls**t Corp.
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      #3
      Originally posted by Fred Bloggs View Post
      You need to be MVL'ing soon as changes are mooted for the budget. Regards the brolly, well, you'd be their employee, so I do not see a problem.
      I know mate, that's why I asked, seems to make a lot of sense for my situation - will contact the MVL guys on here tomorrow I think...

      Cheers!

      Comment


        #4
        Not a good idea... Particularly with the changes coming up and HMRC watching a raft of MVLs being rushed through and wonder if any of them are actually for a genuine business reason.

        http://forums.contractoruk.com/accou...ng-ltd-co.html
        Last edited by northernladuk; 3 February 2016, 23:57.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

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          #5
          Originally posted by stek View Post
          I know mate, that's why I asked, seems to make a lot of sense for my situation - will contact the MVL guys on here tomorrow I think...

          Cheers!
          As things stand, even an employee working in the same area could be regarded as caught by the new 2yr rule, since it refers to a "similar trade or activity". Until that is clarified, I wouldn't bother.

          Comment


            #6
            Originally posted by jamesbrown View Post
            As things stand, even an employee working in the same area could be regarded as caught by the new 2yr rule, since it refers to a "similar trade or activity". Until that is clarified, I wouldn't bother.
            Perhaps prudent, bit wholly tho!

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              #7
              Originally posted by stek View Post
              Perhaps prudent, bit wholly tho!
              That's the point. They live for vague, and you won't know until it's tested, but the guy leading the consultation at HMRC appears to be of the opinion that an employment would qualify as "activity", and the legislation would apply, subject to the other conditions being met.

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                #8
                Originally posted by jamesbrown View Post
                That's the point. They live for vague, and you won't know until it's tested, but the guy leading the consultation at HMRC appears to be of the opinion that an employment would qualify as "activity", and the legislation would apply, subject to the other conditions being met.
                Yup, that's what I heard...but then he also said if you closed a Ltd Co to take on a permanent role you'd probably avoid being caught because tax wouldn't be the main motivation for closing. I stressed to him I wasn't happy with that because the consultation uses the phrase "arrangements have a main purpose, or one of the main purposes, of obtaining a tax advantage." There may of course be many reasons why someone's closing, but if they're getting cash out at ~10% tax, I can imagine it'll be very easy for HMRC to argue tax was one of the main purposes.

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                  #9
                  For what it's worth, I think going brolly is a great idea
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                    #10
                    Originally posted by Maslins View Post
                    Yup, that's what I heard...but then he also said if you closed a Ltd Co to take on a permanent role you'd probably avoid being caught because tax wouldn't be the main motivation for closing. I stressed to him I wasn't happy with that because the consultation uses the phrase "arrangements have a main purpose, or one of the main purposes, of obtaining a tax advantage." There may of course be many reasons why someone's closing, but if they're getting cash out at ~10% tax, I can imagine it'll be very easy for HMRC to argue tax was one of the main purposes.
                    especially if you go through an MVL that boasts "Start your solvent liquidation to benefit from capital gains tax breaks today!" on their home page

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