Accountants for IT Professionals

It depends on what’s left in it. Where the distribution of profit is under £25,000 a strike off can usually be treated as capital. Above that, a members’ voluntary liquidation is normally needed to get capital treatment, which means appointing a licensed insolvency practitioner. Either route takes time and needs final accounts first, so it’s worth starting the conversation early rather than at the point you want the money out.

Yes, and this is the one that catches people out. If you wind up a company, take the money as a capital distribution, then carry on a similar trade within two years, HMRC can treat the distribution as income instead, which usually means more tax payable and possible interest and penalties. Coming back to contracting after a permanent role is exactly the pattern the rule is aimed at. If there’s any chance you’ll return, tell us before you close anything.

Usually not any more. Most IT consultants spend very little on goods, which makes them limited cost traders and puts them on the 16.5% rate. At that level the scheme rarely beats normal VAT accounting. It’s worth checking rather than assuming, but the answer for consultants is generally no.

The work is still taxable in the UK, but the VAT treatment changes. Services supplied to a business customer outside the UK are usually outside the scope of UK VAT, which also affects whether that income counts towards your registration threshold. Getting this wrong in either direction is common, so it’s worth confirming before you invoice.

Yes, where it’s used for the business. Laptops, monitors, servers and home office equipment are usually claimable, with larger purchases treated as capital assets. Where there’s meaningful personal use, that proportion has to come out, and equipment provided to you personally can create a benefit in kind if it isn’t handled properly.

Yes. No need to wait for year-end. We manage the handover with your current provider.