Hi. How should you get rid of your 35 company when you’re finished using it? Yeah. Hi, this is Gordon D’Silva, and one of the questions I’m getting asked more and more frequently is, uh, I F I can’t do contracting anymore. I’ve been forced out by the new legislation. How do I get rid of my company? Do I just do a members’ voluntary liquidation or do I do a short form liquidation on my own?
Oh through my accountant. And the answer is, it depends what you want and how secure you want to be. Now, the best, most secure ways of course, to do it through a members’ voluntary liquidation through a proper liquidator. Now that costs anywhere between three and 5,000 pounds, depending on what’s going on.
Uh, and, uh, you know, our liquid data is, uh, is very ofeh with this diaper need, and he does it quite regularly for us. But that way, once it’s shut down and there’s no guarantee it will be shut down until the revenue have approved it. Because one of the things about any liquidation, certainly a member’s voluntary liquidation through a liquidator, uh, they have the opportunity to say, look, no, I don’t think, uh, we want to let this go until we’ve had a look at what’s going on in the business.
So for example, if you’ve done some tax planning or you got an I 35 issue. Then they may well look harder at the, uh, the accounts and the tax before they allow it to be fully liquidated. Because once it’s liquidated through a liquidator, and here’s the key, it’s done. It’s finished. They can be resurrected.
However. You can do it for much lower price, uh, yourself. Especially if you’ve got assets of under 25,000 pounds, you could do it yourself and it is quite tax efficient. However, if it does get closed down, the inland revenue can reopen it very, very easily. One letter from them and the company’s reopened and they can take action against the directors for anything that they find in it.
So depending on whether it’s worth their while opening it, a will be determined by whether they should, whether, whether your S your liquidation is safe or not. So let me summarize. If you want it to be absolutely Bulletproof, then go through a proper liquid data again, that’s no guarantee it will be liquidated because the inland revenue will have a chance to examine.
It’s before it goes through. On the other hand, if you are not too worried about what’s going on and you just got under 25,000 pounds to get rid of, then a very quick liquidation, we’ll probably save you 50 to 80% of that fee. Depending on who you’re using and what you, what you’ve got and what your end goal is to get it done.
All right. Hopefully that answers that question. Uh, what to do if you have done with your company. Okay. This is Gordon D’Silva signing out. Please don’t forget if you found this useful, please click the like button if you want to keep getting, um, business and tax emails. Oh, lots from us. Click the subscribe or just send us an email and we’ll put you on our list and we’ll keep you in touch with this things that are going on as they go on so that you’re up to date.
All right, this is Gordon D’Silva wishing you well. Take care. Bye. Bye.
