Hi,
in Mar 2020 I decided to close down my business in mar 2020, (I am an IT consultant) and then go via the umbrella solution as the company required (April 2020). I claimed entrepreneur's relief in my personal tax return as expected. My company was open for 13 years, so a big chunk of money was released.
I stayed with the umbrella company until Jan 2021 and then in April 2021 i was offered another contract inside IR35. The job agency insisted that I can't do via an umbrella solution but via a Ltd company only!. I told them that it has only been a year since I closed down my company but they said it's ok you can open a company at any time. I had heard about the 2 year rule but i wasn't sure where it applies, companies house allowed me to open a new company.
However, last week I saw that if you claimed entrepreneur's relief you have to wait for 2 years otherwise they will refuse the entrepreneur's relief and charge you 30% tax instead retrospectively.
I have not put any invoices, get paid etc via the company account now, no transactions via the new company. What are my options, i went back to the agency and told them that they need to put me through an umbrella. Can i get clearance from HMRC for example to start again as i don't have any tax benefit, it's all inside IR35 .
Thanks very much for any answers!
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