Back to the original subject (whether an umbrella role could count as "carrying on the same trade or activity") I found the following communication from HMRC after some digging around online. I believe the original poster, Chris Maslin, is an existing CUK contributor so I hope he doesn't object to me posting the link:
Distributions-in-a-winding-up
Within this are the following comments:
"Condition C is that the individual continues to carry on the same or a similar trade or activity to that carried on by the wound-up company within the two years following the distribution."
and
"Condition C will not be met where the individual is employed by an unconnected third party."
It goes on to give an example where condition C is met by someone moving to employment where the new employer is owned by the distribution beneficiary's brother, and concludes that it is only the familial relationship which leads to the condition being met.
This seems to be very clear-cut; Ltd-to-employment is fine as long as there is no existing relationship between the ex-contractor and the new employer, which in my case there obviously wouldn't be.
However the document is unsigned and does not include any HMRC reference number or similar.
I am wondering how comfortable people would feel relying on this as evidence of HMRC's intentions.
Distributions-in-a-winding-up
Within this are the following comments:
"Condition C is that the individual continues to carry on the same or a similar trade or activity to that carried on by the wound-up company within the two years following the distribution."
and
"Condition C will not be met where the individual is employed by an unconnected third party."
It goes on to give an example where condition C is met by someone moving to employment where the new employer is owned by the distribution beneficiary's brother, and concludes that it is only the familial relationship which leads to the condition being met.
This seems to be very clear-cut; Ltd-to-employment is fine as long as there is no existing relationship between the ex-contractor and the new employer, which in my case there obviously wouldn't be.
However the document is unsigned and does not include any HMRC reference number or similar.
I am wondering how comfortable people would feel relying on this as evidence of HMRC's intentions.
Comment