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PSC obligations

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    #11
    Originally posted by oliverson View Post
    Seen a lot of comments on here about closing the Limited company, or dormancy, and going via umbrella or perm but surely it's not that simple? Like us as individuals, companies have obligations of their own; insurances, equipment leases, professional fees, overdrafts, outstanding tax, etc. It's not like you can just put the brakes on unless the company has a huge warchest. Are people planning on pumping their new net wages into their Limited company to honour these obligations? Could work out quite expensive. What about those that don't have much retained? Are they planning on insolvency? Would these IR35 changes be some justification for just letting the company rot, i.e. they (HMRC) killed the market? Would they come after the owner/director for unpaid tax?
    You're right there will be a bunch of things to unwind/de-register/cancel etc when looking to close your company.

    You mention "equipment leases"...certainly it's one thing we'd mention when people are considering things like a company car. You're normally committing for at least two years, sometimes 3+, so do ensure you're happy you'll be wanting to keep your company for that long before signing up to anything along those lines.

    Certainly your company should have enough within it to settle any final tax bills etc. If it doesn't, and you're relying on future income to pay past tax bills, that's a very unhealthy way to operate.

    There may be some people who decide to simply leave their company to rot as you put it. This may be especially true (with some modest sympathy) where the company's contractor focussed accountant decides to give up the ghost as the bottom has just fallen out of the market. You would be failing in your responsibilities as director, and there are powers available to punish you for that. Whether HMRC/anyone else bothers to is another matter.

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      #12
      Originally posted by northernladuk View Post
      Says the guy who speculates on outcomes of potetial FTT etc constantly.

      With the PS many of the agencies moved the payment date forward so it fell in the right year. Risky but not aware of anyone that got paid late.
      ok, that's all I was asking.

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        #13
        Originally posted by ComplianceLady View Post
        Yep, we're running payrolls up to 5/4 with reporting on outstanding timesheets every day from 20/3. We have a timetable to get provisional status, contracts flipped & payments processed. We will be issuing contracts by end of Feb on the post April basis with a start date aligned to last payment. This particular issue has received a great deal of consideration from agencies, failure to get this right leaves the agency liable for ERNI on payments after 6/4 that haven't been converted properly, not a risk an agency will take.
        So would you say, as NLUK indicates, that in the public sector most who worked in the March prior to the April implementation were paid before April 6th and thus had no tax or NI deducted at source?

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          #14
          Originally posted by JohntheBike View Post
          So would you say, as NLUK indicates, that in the public sector most who worked in the March prior to the April implementation were paid before April 6th and thus had no tax or NI deducted at source?
          Yes
          merely at clientco for the entertainment

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            #15
            Originally posted by eek View Post
            Yes
            thanks. Let's see how the private sector reacts!

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