Old company dissolved; New company formed; IR35 insurance for both?

[MickeyP]

Hi all,

I closed my last company (last accounts filed Nov09 - dissolved May this year). Opened new company Aug 10. In your opinions would I need IR35 insurance for:

a) The new company?
b) The old company?
c) Both?

Cheers

Mickey

[Spacecadet]

Hi all,

I closed my last company (last accounts filed Nov09 - dissolved May this year). Opened new company Aug 10. In your opinions would I need IR35 insurance for:

a) The new company?
b) The old company?
c) Both?

Cheers

Mickey

HMRC can reopen a closed company if they think its worthwhile in doing so and simply closing a company does not make that company immune to IR35 investigations.

With regards to the insurance, you probably want to talk to your insurance providor.

Which leads me onto another question:
IR35 insurance, if I'm covered for a contract do I keep having to pay that insurance indefinitely to maintain cover for that contract given than HMRC could investigate me years later?

[malvolio]

Hi all,

I closed my last company (last accounts filed Nov09 - dissolved May this year). Opened new company Aug 10. In your opinions would I need IR35 insurance for:

a) The new company?
b) The old company?
c) Both?

Cheers

Mickey

a) Obviously. Join the PCG and do it properly

b) Probably not by now. HMRC can reopen companies but it's highly unlikely they'll bother if you've closed everything down properly.

c) See (a). Or perhaps (b).

[MickeyP]

a) Obviously. Join the PCG and do it properly

b) Probably not by now. HMRC can reopen companies but it's highly unlikely they'll bother if you've closed everything down properly.

c) See (a). Or perhaps (b).

Isn't it conceivable that any future investigation into the new company might lead to wanting to look further into the old company?

Would (a) still cover that? Or might I sleep better at night with (c)?

[malvolio]

Isn't it conceivable that any future investigation into the new company might lead to wanting to look further into the old company?

Would (a) still cover that? Or might I sleep better at night with (c)?

Ahem. Join the PCG. Any and all investigations are covered as long as you are a member.

That aside, opening a company is expensive in time and money and HMRC are unlikely to do it just for IR35. If they had any doubts they should have rasied them when the company was closed down. Unless you get done for fraud as a director, it is a vanishingly small risk that the old co will be investigated.