Setting up a limited company for contract work

[Lance]

So it doesn't matter what it sounds like to you both. It's simply your opinion. There is no connection between rate and D&C.

Yes. Stated as opinion. And stated there is no connection.

Vehement agreement.

It was you who called it bulltulip.

[stek]

Thanks for you response.

From my understanding which is fairly little at the moment as you could probably tell. I am definitely outside IR35 because I do have complete control. No one is paying any tax or NI on my behalf or employers NI.

IR35 refers to complete control in the role - ie work, not tax or corporate status, ie are you there to do a day-to-day job or provide a solution and clear off?

[jrshubrook]

IR35 refers to complete control in the role - ie work, not tax or corporate status, ie are you there to do a day-to-day job or provide a solution and clear off?

I will be there day-to-day for the foreseeable future, no current end date.

[northernladuk]

Thanks for you response.

From my understanding which is fairly little at the moment as you could probably tell. I am definitely outside IR35 because I do have complete control. No one is paying any tax or NI on my behalf or employers NI.

There are many more factors so you will need your contract reviewing which will cost around £99. You then should be taking insurance out or getting IPSE+ membership out at £250 or so.

Basically the company I will physically be working at have gone to a IT-recruitment consultancy, I have a friend who works for the recruitment consultancy that has offered me the role at £120, obviously i'm not born yesterday the company (IT recruitment consultancy) who im basically going through take there own cut (20%-30%) with the remaining of £120 being paid to me. It's not ideal but its a fairly entry level role and I haven't got the most experience and without taking an even lower rate wouldn't be able to get the experience to increase my rate.

On that basis I would have thought that setting up a ltd company would be a way to maximize my own income from the same rate as I would from setting umbrella to avoid more tax, NI contributions and employer contributions as shown above?

It's down to the numbers. The idea is a limited allows you to keep under the tax thresholds. If you aren't earning that much to hit them then it evens out.

I'd strongly suggest you get the figures from Lisa so you are absolutely sure.

I will be there day-to-day for the foreseeable future, no current end date.

Oh dear oh dear......

[Lance]

From my understanding which is fairly little at the moment as you could probably tell. I am definitely outside IR35 because I do have complete control. No one is paying any tax or NI on my behalf or employers NI.

read this lot https://www.contractoruk.com/ir35

It's important. And may well have a significant impact on the perceived benefits of using a LTD.

[stek]

I will be there day-to-day for the foreseeable future, no current end date.

Then I'd say you're most likely IR35-caught.

[northernladuk]

Then I'd say you're most likely IR35-caught.

Yup. So MoO and RoS are probably a problem as well and SDC comes in.

[Lance]

Did Radish accept my offer of a £100 bet by implication?

[jrshubrook]

There are many more factors so you will need your contract reviewing which will cost around £99. You then should be taking insurance out or getting IPSE+ membership out at £250 or so.



It's down to the numbers. The idea is a limited allows you to keep under the tax thresholds. If you aren't earning that much to hit them then it evens out.

I'd strongly suggest you get the figures from Lisa so you are absolutely sure.



Oh dear oh dear......

Okay sort of following you, the problem I have is that after completing the calculator based on a limited company without going fully in depth and on most other umbrella sort of styled calculators I always end up about £400-£500 short of what I calculate.

From what im learning so far then there is insurance to take into account and other expenses but even with these expenses the numbers don't add up and seems to make more sense to do it myself with up to £500 extra in my pocket each month.

I'm assuming the differences are down to when setting a ltd company up under a company they pay a wage of the max amount and not taking advantage of dividend payment instead which are from what I've read much more tax efficient and no NI payments are paid.

[radish2008]

Did Radish accept my offer of a £100 bet by implication?

If I remember correctly you said the low rate would put him inside. I think he should spend a weekly invoice on a contract check.