If you are deemed to be inside IR35, it will mean getting taxed as an employee and likely paying a higher rate, minus any employment rights such as holiday or sick pay.
You may now be thinking that your PSC will no longer be required. If so, you should speak to your Accountant to discuss the best way to close it down.
If your company is solvent, it may be the case that a Members’ Voluntary Liquidation (MVL) is the best and most tax-efficient solution. Depending on your circumstances, you may also qualify for Entrepreneur’s Relief (ER), meaning you’ll only pay tax at the lower rate of 10%.
Clarke Bell can help you with our ‘£995 MVL’ service. We’ll guide you through every aspect of the process, taking into account your specific circumstances. Contact us today for free confidential advice.
For some contractors, the reduction in their tax-home pay will result in them having cashflow problems. In these situations, we are also able to help you – with our Creditors’ Voluntary Liquidation (CVL) service.