Closing your company due to IR35

Case Study 1:

‘Mark’ made an inquiry to 1st Business Rescue after seeing one of our posts on social media.

He had worked in the financial services sector at various banks and they had all had a blanket ban on contractors using ltd companies and was offered a job through PAYE.

This was his situation…

The company had incorporated in 2014 and he worked for a number of banks

Debts

HMRC Corporation Tax -£5,344
Accountants -£1200

Cash at the bank -£106,000

Mark was able to pay off his debts and still had funds left in the account.

We advised him to do a member’s voluntary liquidation. This is sometimes referred to as solvent liquidation.

He appointed a liquidator which cost him just under £1,000 and closed the company down. As he no longer needs the ltd company and has taken a PAYE position.

By using an MVL ‘Mark’ was also able to take advantage of Business Asset Disposal Relief, formally known as entrepreneurs relief. If you qualify for this you will be taxed at just 10%.

There seems to be a lot of confusion in the contractor world around how to close a company.

Next Thursday 15th July at 12 I’ll be going through the various ways you can close your ltd company if you have been affected by IR35.

I’ll be covering:

As well as answering any questions that you may have.

I’ll drop the registration details in the comments section below

If you would like to join us next Thursday 15th July at 12pm for our contractor closure webinar register here –https://share.hsforms.com/1gq8irC1NTxWBlzszCOTpPA52njo

Please get in touch and we’ll come back to you
without delay.

Call 0808 506 2246
Text 07717 738 167
Complete a Free Online Enquiry