What to do with Ltd Company

[Chutley]

On the bench for a year, no income into the business. Admittedly, 6 months of that was planned.

Not had a sniff of Outside IR35 roles, turned away loads on inside roles as they were long distance and no expenses.

Probably going to accept an inside role, with a decent day rate.

What to do with Ltd Company... has a good war chest in the bank. Close and MVL. Or let it go dormant with the money in the bank in case I can return to an Outside IR35 role.

Appreciate thoughts .

[Eirikur]

Should have gone dormant almost immediately. Now close asap

[psychocandy]

Trouble is leaving company open means you still have to do annual returns etc so still need an accountant on board pretty much.

After 6 months on my public sector inside IR35 role working through umbrella I shut it down. Apparently, its easy enough to resurrect anyway afterwards.

[nomadd]

On the bench for a year, no income into the business. Admittedly, 6 months of that was planned.

Not had a sniff of Outside IR35 roles, turned away loads on inside roles as they were long distance and no expenses.

Probably going to accept an inside role, with a decent day rate.

What to do with Ltd Company... has a good war chest in the bank. Close and MVL. Or let it go dormant with the money in the bank in case I can return to an Outside IR35 role.

Appreciate thoughts .

Speak to your accountant.

With retained capital in the company account, it may be cheaper to take dividends-only from the company for a couple of years of £45k, rather than go the MVL route (10% tax plus the MVL costs, versus just 7.5% NI on the dividends.) Plus, if you keep the company open, you can keep looking for work, should things improve post-Brexit.

[Surrey Contractor]

Should have gone dormant almost immediately. Now close asap

You still need to pay your accountant though right?
That cuts into the funds you might have in your bank account set aside for corp tax, which you need to make up yourself. That's always the problem I find with extended periods between contracts

[mogga71]

On the bench for a year, no income into the business. Admittedly, 6 months of that was planned.

Not had a sniff of Outside IR35 roles, turned away loads on inside roles as they were long distance and no expenses.

Probably going to accept an inside role, with a decent day rate.

What to do with Ltd Company... has a good war chest in the bank. Close and MVL. Or let it go dormant with the money in the bank in case I can return to an Outside IR35 role.

Appreciate thoughts .

I am expecting (and hoping) that we will see some specialist and reasonably priced MVL services pop up over the next 12 months as I would imagine the majority of contractors will close down their Company when the realisation that the outside gigs will be virtually non existent. Closing the Company also has the added benefit of not likely be investigated. I certainly will be closing my Company down. I see little point in keeping it dormant.

[Eirikur]

You still need to pay your accountant though right?
That cuts into the funds you might have in your bank account set aside for corp tax, which you need to make up yourself. That's always the problem I find with extended periods between contracts

I went dormant for a few months, accountant cost was 25% of normal rate