Overview
This company had been managing social services contracting for 5 years but had become financially stumped due to IR35 legislation changes.
With matters out of her hands, the director had been presented with a couple of options from the HMRC, none of which were viable for her.
About the company
Incorporated for 5 years, the company was set up for contracting purposes. The director worked alone successfully until legislation changes made the business model no longer viable.
The challenge
The company was impacted by the IR35 legislation changes which saw contractors paying the same Tax and National Insurance contributions as an equivalent employee.
This meant that in addition to £9,000 due to the HMRC, moving forward, the director either faced deduction charges at the source or needed to be employed by an umbrella company. Neither was an option for her.
“The director was very distressed when she contacted us… she couldn’t see a way forward and needed urgent advice.”
– Emma, Case Manager
How we helped
On understanding the director’s position, it became clear our client needed to cease trading immediately. Advising her to seek employment, we took over the business concerns and guided the company through the liquidation process.
The result
The director found employment and we were able to complete the liquidation process using her redundancy claim.
“It was a big and tough change for the director, we took things at her pace and only moved when she was ready.”
– Emma, Case Manager
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