Are you a contractor who no longer needs their company due to the IR35 tax reforms?
‘Tony’ has worked in the oil and gas industry for 10 years and has been forced to take a PAYE position with his company as they have a blanket ban on using ltd companies.
He was hoping that he could find a role outside IR35 but after months of searching, he called me 2 weeks ago.
Work was slow last year and he spent 6 months off work.
Here is his problem:
The company owes 1 year corporation tax at around £3,000
He took a Bounce Back Loan of £16,000 last May.
The bounce-back loan was used for some courses, paying off his previous years corporation tax, accountants bills, hotel, and travel Expenses and his salary.
He has £3,000 left in the bank.
He has no overdrawn director’s loan.
The best solution for Tony was to enter into voluntary liquidation. He was quite worried about this but after discussing his issues in-depth it was clear to see that Tony had done nothing wrong and this was the right option for him and his company.
Before he made any decision we assessed Tony’s eligibility for redundancy, he has been on the payroll for 10 years and his redundancy claim comes to just over £10,000! This will be paid to him after liquidation.
Tony put the call off for 3 months and said he wished he’d got advice sooner.
I’m going to be holding a webinar next Thursday 15th July at 12 to explain in detail the options available to contractors looking to close their companies due to IR35.
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Register for the webinar in the comments section.