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Closing down a contractor’s limited company can be a daunting task, but it doesn’t have to be.
If you’re wondering why you should close your limited company or what options you have, this section will address those questions.
With facts and figures from reliable sources, we’ll explore the reasons why someone might close down their contractor-limited company and the different options available for doing so.
The decision to close a limited company is not one to be taken lightly, and there are many reasons why a company may need to be dissolved. This may be due to the end of a project, lack of profitability, or even retirement. However, it is crucial to note that closing a limited company cannot be done without following the legal requirements set out by Companies House.
There are several options available for closing a limited company, one of which is to make the company dormant. By doing this, the company has ceased all trading and has no financial transactions or employees. Another option is to opt for Members’ Voluntary Liquidation (MVL), which involves appointing a liquidator to realize assets, pay creditors, distribute any remaining funds among shareholders, and ultimately dissolve the company.
A third option is Voluntary Strike-Off, which is only possible if the company has not traded in the past six months and does not have any outstanding debts or liabilities. Lastly, switching to an Umbrella Company is also an option and may be considered if the contractor wishes to continue working as an employee rather than running their own limited company.
Before deciding on how to close a limited company, it is essential to consider tax implications, future trading prospects, and the IR35 status of the contractor. Seeking professional advice is advisable before making any decisions.
Once ready to close a limited company, certain steps need to be taken. These steps may include terminating contracts and informing clients, filling out necessary forms, paying fees, and distributing remaining profits among shareholders according to their shareholding percentages. It is important to plan and execute the closure of a limited company correctly to avoid any legal or financial repercussions.
Closing a limited company can be a daunting task, but there are several options available to make the process easier. These options include making the company dormant, going for Members’ Voluntary Liquidation (MVL), choosing voluntary strike-off, or switching to an Umbrella Company.
Each option has its advantages and disadvantages that should be carefully considered before making a decision. To help with this, a step-by-step guide for closing a limited company is provided below.
Another aspect to consider is the tax implications of closing a limited company and assessing future trading prospects. It is also necessary to take appropriate steps, such as informing clients about the situation and terminating contracts before proceeding with closing the company.
To complete the closing process, required forms must be filled out, and different fees must be paid to Companies House. Distributing remaining profits among shareholders is another important step in the process.
In conclusion, it is essential to analyze individual circumstances and make informed decisions before finalizing the appropriate option for closing a limited company.
Looking to close your IR35 contractor company but not sure of the most efficient way? Look no further than making your company dormant. By making a limited company dormant, you can save on administrative costs while still being able to easily revive your company in the future.
Learn the steps involved in making your company dormant, as well as the pros and cons of doing so.
Making a limited company dormant can be a smart option for those considering temporarily stopping operations. This could be advantageous for companies that do not expect to earn income or incur expenses for a period of time but do not intend on closing the business for good. If you’re considering making a limited company dormant, follow these five steps:
It should be noted that although a dormant company does not need to submit Annual Accounts and Confirmation Statements, it is still required to file dormant accounts with Companies House annually. By following these steps, you can effectively make your limited company dormant.
Making a company dormant can be a viable option for closing a limited company without going through formal closure procedures, which can help reduce costs and administration time. By doing this, the legal status of the company is retained while all trading activities are ceased. This means that the company’s assets and intellectual property continue to be protected, while compliance requirements are avoided. Moreover, directors have the opportunity to take a break from running the business while they consider the company’s future prospects.
However, it is important to note that there are some disadvantages involved in making a company dormant. The ability to trade is restricted which might prevent directors from carrying out commercial activities, and obtaining credit or loans can be difficult. Additionally, the bank account may be frozen, making it impossible to receive or make payments. The company also remains liable for filing annual accounts and keeping records.
It is essential to consider factors such as future trading prospects, tax implications, and IR35 status before deciding to make a company dormant. It may not be the best choice for every business situation. Therefore, it is important to weigh the advantages and disadvantages of making a company dormant before making a final decision.
If you are considering shutting down your contractor company due to the IR35 tax regulations, there is an efficient option available known as Members’ Voluntary Liquidation, or MVL.
This process involves liquidating the assets of the company and distributing the proceeds to the shareholders. The advantages of MVL include reduced tax liabilities and simplified distribution of assets, while the disadvantages include potential costs and requirements for professional assistance.
To determine whether MVL is the best choice for your company, it is necessary to consider all of the factors involved.
Members’ Voluntary Liquidation (MVL) is a formal process for closing a solvent limited company. Many people may ask “what is MVL?” It involves appointing an insolvency practitioner to distribute the assets and remaining profits to shareholders after settling all obligations, such as notifying Companies House, HMRC, creditors, and shareholders.
During MVL, the appointed liquidator takes control of the company’s assets and resolves any outstanding liabilities before distributing the remaining balance to shareholders. Shareholders may also choose to receive distribution of assets in kind, such as property or investments. It is important to note that the appointed liquidator must meet specific qualifications and follow strict procedures to ensure transparency and accountability throughout the process.
MVL offers advantages over other methods of closing down a company because it provides more favorable tax treatment on distributions from share capital accounts (profit reserves) compared to dividends or salary payments. Additionally, it provides certainty for creditors that all obligations will be met before distributing any remaining profits.
However, MVL may not be suitable for companies with substantial debts or ongoing disputes involving major parties or regulatory concerns. Seeking advice from qualified advisors such as lawyers and accountants can help identify potential risks and determine the best course of action.
In summary, “what is MVL?” MVL is a useful option for closing a solvent limited company, but it is essential to consider all factors and seek professional advice before proceeding.
Members’ Voluntary Liquidation (MVL) is a tax-efficient method for closing down a solvent limited company. The process involves several steps, starting with the directors making a Declaration of Solvency confirming that the company can settle its debts in full within 12 months. Once this is signed by all directors, shareholders must pass a special resolution to approve it.
The appointed liquidator takes control of the company and sells its assets to pay off all outstanding debts. Any surplus remaining after settling these debts is distributed to shareholders. Throughout the process, the liquidator is required to file various reports and accounts.
The advantage of using MVL is that shareholders can access Capital Gains Tax (CGT) treatment on their distributions instead of Income Tax treatment. According to Companies House data, only 1% of voluntary dissolutions in England and Wales between January and September 2020 were Liquidations under Section 89(1) or Members Voluntary Liquidations.
Although closing a contractor company with MVL may be beneficial, it is important to consider all possible outcomes before making a decision.
MVL, or Members’ Voluntary Liquidation, is a process that can be used to close down a limited company and distribute its remaining assets to shareholders. It offers many advantages, including the ability to distribute funds at a lower tax rate than dividends, increased control for directors, and greater flexibility in managing share capital. Additionally, it helps establish credibility with clients and suppliers. On the other hand, there are some disadvantages to consider. MVL may not be suitable for companies with significant liabilities or complex structures, and liquidators charge fees for their services.
Furthermore, an MVL is considered a solvent procedure under UK law and does not decrease the value of the company’s shares if publicized. However, MVL is useful in handling succession planning or reorganizing business interests, and according to Forbes Expert Panel member Jeff Badu, “if you are transferring assets from one company to another or restructuring your business due to retirement or other reasons, then using an MVL can be attractive.”
Interestingly, Ernst & Young’s research shows that 42% of global companies using an M&A strategy would consider using MVL in appropriate circumstances.
Voluntary Strike-Off is an option for closing your company as an IR35 contractor.
This process can be completed within a few months and is relatively cost-effective.
In this section, we will discuss what Voluntary Strike-Off is, how to apply for it, and the pros and cons of this option.
When a limited company wants to cease trading, Voluntary Strike-Off is an option. It is a process that removes the company’s name from the register of companies, making it legally null and void. Voluntary Strike-Off can only be initiated if the company has ceased its activities for at least three months, and there are no active legal actions against it. The shareholders have to pass a resolution confirming that they want to remove the company permanently from the Companies House register.
The primary advantage of executing this process is that once it’s complete, the limited company would not have any more statutory obligations or responsibilities. However, one disadvantage is that should financial commitments arise in later years connected with the previous business activities, these will still remain as liabilities of former directors/shareholders. The voluntary strike-off procedure takes about two months if all goes well.
Another detail about Voluntary Strike-Off is that HM Revenue & Customs (HMRC) informs creditors before starting this procedure and may object within five weeks if it finds anything untoward in handover accounts or missing payments from taxes or VAT payments, etc. Once all liabilities are resolved – irrespective of their source, e.g. Banks, credit card suppliers, and PAYE settlement agreements are settled by HMRC, among others, Companies House will publish notifications in The Gazette stating that the company will be struck off the register in 2 months.
Overall, when deciding whether to opt for Voluntary Strike-Off or not, careful consideration of factors is required as it renders the company illegitimate after completion, potentially exposing former directors and shareholders to penalties and disqualification measures. If you’re thinking of using this method as part of winding up your contractor-based operations while taxed under IR35 regulations, it is advisable to seek expert advice on tax affairs before beginning the process.
If you are considering Voluntary Strike-Off as an option for closing your limited company, it is crucial to understand the necessary steps involved in the application process. Firstly, it is crucial to notify the company’s shareholders or directors about your intention to apply for voluntary strike-off. After that, you must clear all outstanding liabilities, loans, taxes, debts or other obligations towards third-party stakeholders. Before proceeding, it is also essential to ensure that all accounts and records are up to date.
To apply for Voluntary Strike-Off officially, you must follow the following four steps:
It is essential to bear in mind that if there are any unresolved issues from HMRC, such as taxes or debts still present before starting the Voluntary Strike-Off process, they can potentially halt the dissolution of the limited company through objection during the six financial years before filing Form DS01. They may also continue to charge penalties on the remaining tax due amounts.
So, before starting the Voluntary Strike-Off option, it is advisable to check comprehensively with HMRC to avoid potential legal implications. A pro tip would be to monitor all communications with Companies House regarding your closure status diligently once you have made the application using Form DS01 (striking off application).
Keywords: how to apply for voluntary strike-off.
Voluntary Strike-Off is a process that allows a limited company no longer trading to be dissolved efficiently. This legal procedure involves filing required documentation with Companies House. There are several advantages and disadvantages of Voluntary Strike-Off.
On the positive side, it is a cost-effective way, and the director can close down the company without involving third-party entities or insolvency practitioners. It also offers confidentiality by avoiding public scrutiny during the winding-up procedure. Once the company is dissolved, it cannot be restored. This provides finality and relieves directors from statutory duties, reducing accounting burdens and simplifying tax matters.
However, there are also downsides to Voluntary Strike-Off. Directors must ensure liabilities are settled before starting the process. Shareholders may face obstacles in dealing with business suppliers, customers, and banks without proof of their limited liability status. It is important to note that if there has been any trading activity within three months of applying for Voluntary Strike-Off, unpaid creditors can object within two years of dissolution. Additionally, fraud or malpractice should be addressed through proper insolvency procedures like Liquidation or Administration, rather than Voluntary Strike-Off.
In conclusion, while Voluntary Strike-Off can be an advantageous way to dissolve a limited company, it is essential to consider both the pros and cons before making any decisions. And if you’re considering switching to an umbrella company, remember that sometimes it’s better to share the rainy days.
Switching to an Umbrella Company can be a viable solution for contractors who want to minimize their administrative tasks and take home more money.
An Umbrella Company acts as an employer to contractors and manages their invoicing, tax, and National Insurance contributions on their behalf.
One of the advantages of joining an Umbrella Company is that it reduces administrative tasks, such as dealing with paperwork and chasing payments.
Contractors can focus on their work and enjoy the benefits of being an employee, such as paid holidays and sick pay. However, contractors who join an Umbrella Company will have to pay a fee for the service, which can reduce their take-home pay.
Another advantage of joining an Umbrella Company is that it can provide continuity of employment.
This means that contractors can work on different projects with different clients but remain employed by the same company. This can be particularly useful for contractors who want to work for multiple clients but avoid the administrative hassle of setting up a new limited company for each project.
On the other hand, contractors who join an Umbrella Company will not have as much control over their finances as they would if they were running their own limited company. They will not be able to claim as many expenses, which can reduce their take-home pay. Additionally, contractors who join an Umbrella Company may not have the same level of autonomy as they would if they were running their own company.
In conclusion, the decision to join an Umbrella Company or to set up a limited company depends on the individual circumstances of each contractor. Contractors should weigh the advantages and disadvantages of each option and consult with an accountant or financial advisor before making a decision.
An Umbrella Company is a service company that contractors typically use as an alternative to running their own limited company. The process involves the contractor signing a contract with the umbrella company, through which they receive payments in exchange for their services.
If you’re wondering what is an umbrella company, it’s simply a company that acts as the intermediary between the contractor and end-client, handling all administration work like invoicing, tax, and National Insurance contributions.
The umbrella company does not provide a contract of employment, but it does provide employment benefits such as sick pay, holiday pay, and pension schemes. However, it’s important to note that the contractor is not considered an employee of the umbrella company.
Switching to an umbrella company can help contractors mitigate concerns over IR35 status and compliance issues among potential clients, potentially improving chances of securing future contracts. Not only that, but an umbrella company can also reduce administrative hassle, making it a more convenient way of working for contractors.
With all these benefits on offer, it’s not surprising that switching to an umbrella company has become increasingly popular amongst contractors. Don’t miss out on these opportunities by failing to explore whether switching to an umbrella company is right for you.
Are you tired of dealing with the administrative headache of running your own limited company? Switching to an Umbrella Company can provide relief, as it involves transferring your employment status from a limited company director to an employee of an Umbrella Company, including access to its services. To make the switch, follow our six-step guide.
However, before making such a decision, it’s important to consider factors such as changes in tax liabilities, benefits, take-home pay calculations, and administration fees charged by the Umbrella Companies. Seek advice from qualified professionals before switching.
While switching to an umbrella company may offer protection from IR35 regulations, be prepared to relinquish some control over your finances and work. Take the time to weigh the pros and cons and make the decision that’s best for you.
Switching to an umbrella company can be a viable option for contractors looking to simplify their tax affairs. As opposed to running their own limited company, contractors would essentially become an employee of the umbrella company. This would entail submitting timesheets and expenses to the company, which in turn pays them a salary and handles invoicing clients on their behalf.
When considering switching to an umbrella company, there are various advantages and disadvantages to weigh up. On the one hand, the advantages include simplified administration as all tax obligations are taken care of by the umbrella company. Additionally, contractors can benefit from entitlements such as sick pay, holiday pay, and pensions. However, one key disadvantage is that contractors can take home less pay due to higher fees charged by the umbrella company.
Another potential disadvantage is that some agencies may be hesitant to work with umbrella companies due to concerns over non-compliance with tax regulations. Additionally, contractors may feel a loss of control over their business operations by becoming an employee of another entity.
It’s important for contractors considering this option to carefully consider the pros and cons before making a decision. They should take into account the level of support provided by the umbrella company and their reputation within the industry.
For example, John, a hypothetical successful contractor, was struggling with administrative tasks and decided to switch to an umbrella company. Although he found it difficult to relinquish control over certain areas, he appreciated the simplicity of dealing with one entity and returned his focus to working with clients and growing his business further.
Before closing a limited company, contractors should consider the tax implications, future trading prospects, and IR35 status to avoid any unexpected surprises.
Closing your IR35 contractor company can be a complex process that requires careful consideration of multiple factors.
It is important to understand the tax implications that come with closing a limited company, as well as the potential future trading prospects that may arise.
Additionally, your IR35 status can significantly impact your decision-making process. By taking all of these factors into account, you can make an informed decision that is best for both you and your business.
Closing a limited company can have significant tax implications that should not be overlooked. The method chosen for closure can impact how the company’s taxes are affected. Opting for a Members’ Voluntary Liquidation (MVL) may result in considerable tax benefits. However, this advantage hinges on the value and assets of the company.
A Voluntary Strike-Off may have tax implications for shareholders receiving distributions after the company’s bank account has been closed. Such distributions could constitute capital gains instead of income. Besides, if a company has considerable unused losses or investments that have yet to mature, these losses may not rollover into future years and expire instead.
In brief, closing a limited company necessitates careful consideration of tax issues. Final accounts must be filed with HM Revenue and Customs (HMRC), and all outstanding taxes must be paid before any money can be distributed to shareholders. Furthermore, if a contractor intends to open another limited company or work as a sole trader, they still need to address their funds and whether IR35 will apply to them.
While it is impossible to foresee the future, contractor companies need to contemplate their future trading opportunities before closing their businesses to avoid potential tax headaches down the road.
To assess the future trading prospects of a limited company that is planning to close down, it is important to consider various aspects. Factors such as the overall trading environment, market trends, and competition in the sector should be taken into account to determine whether there would be any future possibilities for resuming trade.
If there are promising prospects ahead, then it might be worthwhile considering holding on to the company or switching to an umbrella company. On the other hand, if the industry is declining or saturated with businesses offering similar services/products, investing further resources into reviving a dormant business may not be feasible or practical.
Additionally, it is important to consider factors like brand name recognition and client base that a company has built over time. In some cases, it may be possible to sell off these assets and continue operations under new ownership but with much less risk than running a limited company from scratch.
It’s worth noting that winding up a limited company does not necessarily mean complete closure. An alternative path such as Voluntary Strike-Off or Members’ Voluntary Liquidation may allow for extending certain benefits like tax write-offs while dissolving the business formally.
Overall, careful consideration should be given before taking any steps towards winding up a limited company. By reviewing potential opportunities for growth and weighing them against potential risks, informed choices can be made towards a more secure financial future. It is crucial to sort out your IR35 status before winding up your limited company; otherwise, it’ll be a taxing process.
IR35 status is crucial for determining whether a contractor is operating as an independent service provider or an employee. The determination of this classification is essential for limited companies and their shareholders to maintain tax obligations. It is important to note that incorrectly classifying employees as independent contractors can result in significant liabilities, including fines and back taxes. Therefore, before closing a limited company, it’s prudent to review and confirm your IR35 status to avoid future legal and financial troubles.
IR35 legislation has undergone significant changes in recent years, making it even more critical for contractors to ensure compliance with IR35 status. Seeking advice from a qualified professional can help obtain an accurate assessment of your company’s IR35 status, making it easier to decide on the next course of action.
While closing a contractor’s limited company can be achieved through various means, each approach will require careful consideration of its impact on future trading prospects, taxes, and shareholders’ interests. Regardless of the method chosen, closing contracts, informing clients, and distributing remaining profits to shareholders will be necessary.
In one case example, a contractor closed his limited company without adequately addressing his IR35 status, which resulted in a large tax bill and costly legal fees. Ensuring that your IR35 status is accurately determined before shutting down your limited company can save you from similar headaches down the line.
Closing a limited company can be a tedious task, but following these essential steps can ensure a smooth and stress-free process for everyone involved:
Closing a limited company can be a daunting process, but it can be simplified by following the correct steps. In this article, we will discuss the actionable steps to efficiently close your IR35 contractor company. The process involves:
By undertaking these steps, you can navigate this challenging time with confidence and clarity.
When closing a limited company, it is crucial to terminate contracts and inform clients. This process involves notifying all parties with whom the company has any agreements or contracts that the company is closing down in an ethical and professional manner to avoid significant issues.
To begin, it is important to identify all current contracts with clients. The next step involves assessing the terms and conditions of these contracts to determine if they can be terminated early. If termination is not possible, then renegotiating a mutually suitable settlement with the client should be explored.
It is advisable to inform clients at least two months before terminating any contract or agreement. This advance notice helps them understand the situation, facilitates discussion about ongoing business processes, and prepares for changes such as identifying new contractors or suppliers.
Clients may have concerns during this period, such as project completion timelines and quality assurance, which need to be addressed adequately and responsibly. It is essential to maintain transparency and honesty in such circumstances to keep client relationships healthy.
To officially bid adieu to your limited company, you will need to fill out forms and pay fees.
Closing a limited company involves several necessary steps, including filling out specific forms and paying fees. It is essential to follow the correct procedures to avoid legal complications. To fill out the required forms and pay the fees, follow these simple steps:
The process for filling out forms and paying fees varies, depending on the chosen option for closing the company. After submitting your strike-off application, Companies House will notify you within seven days. Next, you must inform all interested parties, including shareholders and creditors, that you have applied to dissolve your company. Consider advertising in relevant publications such as The London Gazette. Assuming no objections are raised against the dissolution of your company within two months, it will be struck off the register.
It should be noted that if you’re making a members’ voluntary liquidation or switching to an umbrella company, different forms will need to be filled out along with specific respective fees paid. Follow the correct procedures when filling out necessary forms and paying fees to successfully close your limited company.
When closing a limited company, one of the most important tasks is to distribute any remaining profits to its shareholders. To achieve this, it is necessary to follow proper legal procedures and complete all necessary paperwork in a timely manner.
Distribution of profits can only be carried out once all outstanding debts and obligations of the company have been paid. Any surplus funds can then be distributed among shareholders, in proportion to their shareholdings. However, it is crucial to settle any outstanding tax liabilities or legal claims against the company before distributing profits. Failure to do so could result in directors and shareholders being held personally liable.
To minimize tax liabilities, it is advisable to consider taxable gains when distributing funds. Shareholders are recommended to seek guidance from accountants or financial advisors on tax implications when receiving profits.
Proper and lawful distribution of remaining profits to shareholders is a critical step in the process of closing a limited company. Neglecting to do so can result in serious repercussions for all stakeholders involved.
Efficiently closing an IR35 contractor company requires meticulous planning and execution.
To reach a conclusion on efficient ways to close an IR35 contractor company, first, it is crucial to tie up all loose ends with clients, including finalising contracts and delivering outstanding work.
The contractor must inform HMRC and Companies House of the company’s closure and settle any outstanding tax liabilities. Besides, it is essential to liquidate assets, close bank accounts, and cancel any relevant insurance policies. These steps ensure a smooth and legal shutdown of the company.
However, it is essential to note that before opting for closure, the contractor should consider alternative options, such as selling the company or transferring its ownership.
These options may provide a more financially lucrative solution. By considering all the available options, it can be easier to reach a conclusion on efficient ways to close an IR35 contractor company.
Lastly, failing to properly close an IR35 contractor company can result in legal and financial repercussions. Therefore, contractors must take the necessary steps to secure a legal and efficient closure. If you want to ensure a hassle-free process, don’t risk the consequences of improperly closing your IR35 contractor company.
Consider alternative options, such as selling or transferring ownership, and settle outstanding liabilities before informing HMRC and closing bank accounts. With proper planning and execution, closing your contractor company can be a hassle-free process. Don’t miss out on these crucial steps, and seek professional advice if needed.
Contractors often choose to set up a limited company for more control over their working life and to maximize earning potential. However, there may come a time when a limited company no longer suits their needs, such as retiring or returning to permanent employment.
When faced with such situations, it’s important to handle the shutting down (or ‘winding up’) of the limited company professionally for credit rating and future trading prospects. Contractors should consider if they will need the limited company in the future, as it might be cheaper and less hassle to make the company dormant instead of closing it completely.
Making the company dormant can be more cost effective as it avoids the full expense of closing down and starting again from scratch, although there will be a small overhead involved in maintaining the dormant company. To make the company dormant, contractors should ensure that all clients and any agents doing business on its behalf are aware that they are ceasing trading and any agreements or contracts are terminated.
When closing a limited company, contractors should seek advice on the most tax-efficient way to do so.
Two main ways to close a limited company are through members’ voluntary liquidation (MVL) or informal/voluntary strike-off.
If contractors wish to cease trading through their limited company for now but may wish to revive it later, they should consider making it dormant instead of closing it completely.
MVL can potentially attract a lower rate of tax through Entrepreneurs’ Relief. However, if contractors wish to take remaining profits as a dividend, they will pay tax at the normal rate. Liquidating a company using a licensed insolvency practitioner will subject remaining reserves to Capital Gains Tax.
To make a company dormant, contractors should ensure that all clients and any agents doing business on its behalf are aware that they are ceasing trading and any agreements or contracts are terminated. Keeping the company dormant while contracting through an umbrella company allows for flexibility to switch between limited and umbrella options. There’s no time limit to this option as long as annual returns and accounts are kept up to date with Companies House.
Contractors can apply to Companies House for the company to be ‘struck-off’ the register if they have no further need for it.
The process involves filling out a striking off form (DS01) and sending it to Companies House, with at least half of the directors signing the application and a small fee of £10.
A public record notice will be published. However, the company must have not been active in the three months before dissolution, except for activities related to the dissolution. If contractors are closing their company due to financial difficulties, they should contact their professional adviser immediately.
The IR35 reforms aim to prevent tax avoidance using the limited company structure and have had a significant impact on contracting.
Many contractors are closing their limited companies due to IR35 and post-pandemic changes. From April 6th 2021, private sector companies will also be subject to the legislation, with companies responsible for determining IR35 status.
If considered an employee if not invoicing through a company, they will be a ‘deemed employee’ and should pay National Insurance contributions and income tax. Genuine contractors should carry on as normal, but it is important to understand the legislation in case of an enquiry from HMRC.
A Personal Service Company is a limited company set up to provide the services of a single contractor.
There are two ways of closing down a Personal Service Company: informally/voluntary strike-off or members’ voluntary liquidation (MVL). Contractors should seek advice on the most tax-efficient way to close the company.
If contractors are closing their company due to financial difficulties, they should contact their professional adviser immediately.
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