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?
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Originally posted by oliverson View PostSeen 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?---
Former member of IPSE.
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Many a mickle makes a muckle.
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Originally posted by wattaj View PostOne should need to read up a bit more about each of the points that you raise before posting.
Oh, and I’m not sure what you mean by ‘unpaid tax’...
(Edit: *yes, it is horrible, but no it shouldn’t be a surprise...)"I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
- Voltaire/Benjamin Franklin/Anne Frank...Comment
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Originally posted by cojak View PostAlso, this shouldn’t be a horrible surprise* to people, anyone leasing equipment/cars should have checked things out before signing those contracts. As it is they are going to need to cancel them or service them out of existing salaries.
Oh, and I’m not sure what you mean by ‘unpaid tax’...
(Edit: *yes, it is horrible, but no it shouldn’t be a surprise...)
To both, I'm more interested in people's own 'views' on the questions asked than researching what the answers are. I genuinely believe there will be many contractors resigned to jumping on the payroll/umbrella without realising the implications.
Take unpaid tax to mean tax not yet paid/due, as in VAT and Corporation Tax due further down the line. Same concern as the above.Comment
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I was going to reply as I have time on my hands today, but I really CBA.---
Former member of IPSE.
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Many a mickle makes a muckle.
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Originally posted by wattaj View PostI was going to reply as I have time on my hands today, but I really CBA.Comment
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Originally posted by oliverson View PostTo both, I'm more interested in people's own 'views' on the questions asked than researching what the answers are. I genuinely believe there will be many contractors resigned to jumping on the payroll/umbrella without realising the implications.
Take unpaid tax to mean tax not yet paid/due, as in VAT and Corporation Tax due further down the line. Same concern as the above.
Therefore there are no unpaid taxes at the time of closure.
(The same applies if you don’t close, you just pay the Corp tax in the accounting period and the VAT on all invoices from the Company coffers, then tell your accountant to shut-down the VAT bit to end sending in zero returns.)"I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
- Voltaire/Benjamin Franklin/Anne Frank...Comment
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Originally posted by cojak View PostWhen you close the company, you pay all dues upto and including the date of the last invoice.
Therefore there are no unpaid taxes at the time of closure.
(The same applies if you don’t close, you just pay the Corp tax in the accounting period and the VAT on all invoices from the Company coffers, then tell your accountant to shut-down the VAT bit to end sending in zero returns.)Comment
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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.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View PostSays 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.Comment
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