Originally posted by jamesbrown
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Inside IR35 & I Want to Stay
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Originally posted by rootsnall View PostI know I should understand this but sadly don't. So if HMRC have accepted your final accounts and the company is closed you have escaped ( barring negligence ). What happens if the company is still open but not trading and has limited funds ?
If the company is open, then any proven liability would stand, but the same principle applies about transferring it to a director (i.e., it's hard). Obviously, if you continue trading, the debt stands. Also, for a company still trading, they may be able to claw-back any dividends paid after an IR35 investigation was opened (would need to talk to a professional about that).Comment
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Get your Clint not to assess you and just inform you they no longer take on limited compNy contractors
You then go via umbrella
Sent from my iPhone using Contractor UK ForumComment
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Originally posted by jamesbrown View PostIn practice, probably yes. In theory, they could reopen the company, but it wouldn't get them anywhere, barring negligence.
If the company is open, then any proven liability would stand, but the same principle applies about transferring it to a director (i.e., it's hard). Obviously, if you continue trading, the debt stands. Also, for a company still trading, they may be able to claw-back any dividends paid after an IR35 investigation was opened (would need to talk to a professional about that).Comment
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Originally posted by rootsnall View PostSo if someone was closing their Ltd via the <£25K route and had already distributed the funds then even if HMRC rejected the final accounts ( and opened an IR35 investigation ) they'd be struggling to claw back any IR35 liabilities down the track !?!Comment
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Originally posted by jamesbrown View PostWhether a company is opened or closed or how it was closed isn’t the main issue here, that’s a sideshow. Yes, if the director applied due diligence in operating PAYE, such as a professional status review and evidence of working practices, it would be difficult for HMRC to transfer any PAYE debt to the director were that contract to be subsequently found inside. Likewise for NICS, but the legislation is different in each case. But if the contractor had done their due diligence, it’s extremely unlikely that they were wrong to begin with!Comment
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Originally posted by rootsnall View PostNot all Directors are diligent all of the time
I mean, if a contract were blatantly inside all along and the director didn't conduct any due diligence and it can be shown (e.g., through their posts on CUK ) that the director knew about all this and suspected that the contract were inside, then a transfer of debt might be possible.Comment
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Originally posted by rootsnall View PostSo if someone was closing their Ltd via the <£25K route and had already distributed the funds then even if HMRC rejected the final accounts ( and opened an IR35 investigation ) they'd be struggling to claw back any IR35 liabilities down the track !?!Originally posted by Stevie Wonder BoyI can't see any way to do it can you please advise?
I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.Comment
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Originally posted by SimonMac View PostIANAL/A but IR35 liabilities will be on the person, not the company. So the company closed and they come after you for the liabilities as they are not the companiesComment
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Originally posted by jamesbrown View PostRight, so then the risk is greater.
I mean, if a contract were blatantly inside all along and the director didn't conduct any due diligence and it can be shown (e.g., through their posts on CUK ) that the director knew about all this and suspected that the contract were inside, then a transfer of debt might be possible.
This old post covers the liability issue.
https://www.contractoruk.com/forums/...35-caught.htmlLast edited by rootsnall; 21 January 2020, 18:35.Comment
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