Hi all,
I was sole director in a limited go through which I did contracting in the finance / management consultancy type sector. I stopped generating work c. December 2015, last invoice came in 30 Dec 2015, but the actual wind-up got processed late April as the accountants we're all that quick about it. I was planning to claim Enterpreneur's Relief on the c. £110k distribution that resulted.
I wound up the company to take an offer of permanent employment (starting mid Dec), straight after I'd stopped generating contract work. This was at a new entity, not a prior client. It looks like this isn't going to work out unfortunately, so I'm considering contracting again. (likely yet another new entity unrelated to either current employer or prior contract clients), but same sector as prior contract clients).
My accountant seems to be suggesting that if I did this, regardless of whether I did it through an umbrella or a new limited co, I may be caught by anti-avoidance rules and not only could I not claim ER, but the distribution may be treated as income. Myself, I can't possibly see how my actions could be characterised as "for the purposes of tax avoidance" --> I just wanted to take a job offer and closing the company was a natural (and required) result of my new full time employment. Any thoughts on my position most welcome! Thanks in advance.
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