IR35 changes for contractors to the public sector
Are you a contractor to the public sector?
Reforms to the off-payroll rules (also known as IR35) come into effect from April 2017 for the public sector. This means that the responsibility for accessing IR35 status will move from the contractor / personal service company (PSC) to the public body that is engaging them.
The reaction from some public sector bodies is that they no longer want to work with Limited companies – as they do not want to have to deal with the hassle of assessing the status of each of its contractor workers.
Contractors are being told to convert to a PAYE umbrella or you don’t have a job.
For many contractors to the public sector this means that they will be left with a limited company which they no longer need.
Close your limited company in the most tax-effective way
If your limited company is solvent (i.e. it can pay all of its bills), a Members’ Voluntary Liquidation (MVL) is likely to be the most tax-efficient way for you to close it down.
By using an MVL the funds to be distributed are subject to Capital Gains Tax, rather than Income Tax. If you qualify for Entrepreneur’s Relief (ER) you can benefit from a 10% marginal rate on distributions. This means there can be considerable tax savings for the director(s) of the company.
Our standard fee for an MVL is £995 (+VAT, +disbursements).
We aim to distribute the assets of the company after 35 days from the date of Liquidation.