Going from contract to perm

[jconway]

Hi everyone,

For roughly the last 2 years, I ran a limited company and did contracting through it. Looking back, I probably could've been a bit more diligent about demonstrating that it's within IR35 (e.g. should have been generating documentation proving compliance).

Anyway, it is what it is. I'm now in the process of closing the company by means of a MVL.

Now in a month's time, I plan on taking a permanent position. It's a new company, a new role and in a different part of London.

My question is - all else equal, will my taking this permanent role while closing down the limited company have any impact on how the limited company is perceived by HMRC with respect to IR35?

I imagine many contractors will be moving into permanent roles and possibly closing down their limited companies, so I imagine this question may be pertinent to others.

Thanks ahead of time.

[northernladuk]

No it won't. IR35 isn't really related to your company. It's on a contract by contract basis so they'd have to find one in particular to investigate. By closing the company down it might come under some scrutiny as your closing but as long as your tax affairs are anything like right you'll be fine. You've a chance of getting investigated as you go about your business anyway so closing the company only brings an ever so slight bit of extra risk.

Keep your IR35 insurances going for a full year after you close and you'll have nothing to worry about.