The major area of danger, in my understanding here, is the value that is attributed to goodwill when the consultant sells his practice to a company and CGT paid on that basis. The goodwill that was used, according to media reports, was a multiple of earnings. I don't see a danger if goodwill isn't been recognised and I would recommend specialist tax advice from a specialist in the area.
We have looked at this at various times over the years.
There are just too many issues.
There is a question whether some professions can in fact incorporate. The last time I looked doctors dentists and solicitors could not incorporate their business. They could however incorporate an admin company which provided services to the professional practice.
The potential exposure to VAT from the company to the exempt practice could potentially make the arrangement redundant.
I think there was a practice in Dublin advising professionals to incorporate and who have had a very difficult time with Revenue.
Unless she's earning serious bucks, your wife will most likely find big 4 fees out of her range. If she's interested, she should discuss the specifics with the person who advised her to do it. Unless there's a compelling reason for the switch, she's probably better off leaving well enough alone.this is my worry.
i dont want to be in a position where we are looking at a huge tax bill plus interest in 6 or 7 years time.
even if one of "the big 4" recommend it, is that enough?
would it be prudent to go to revenue and say this is what we are doing, is that acceptable or would that be drawing an audit on ourselvea?
You won't be able to get Revenue clearance. .