Setting up a limited company for contract work

[northernladuk]

I'm outside IR35 it may seem contrary to normal working contractors. A few of MY mates have LTD set up and get more money than when they were set up with umbrella companies.

This thread was mainly to confirm accuracy of the accounts so i could avoid paying accountancy fees and increase money in my pocket which is my best bet at a low rate.

Just because your mates do it doesn't make it right. If they want to take the risk then that's their problem. You are asking us and three of us have said the same. This is not clear cut. There are two many factors pointing to a problem with IR35 and we have no idea what you know about it to be able to take your word that you are outside.

IMO you've two issues here. Your IR35 status is highly questionable. Get a contract check from QDOS for £99 to be sure.
Second is you don't actually know what the figures are. Calculators are highly inaccurate so you need to speak to an actual brolly to find out for sure.

Time to get on with both those tasks.

[radish2008]

I've a temporary contract role before in a completely different role for the same rate of £120 a day. I went through an umbrella company then and got back around £1500-£1600 which is like £600 below what i've calculated and about £300 less than a limited company (based on calculator done earlier).

I fully understand basic accounting (I have AAT level 2 under my belt and studying level 3) to do my own accounts and save in the long run especially when i start increasing my rate, so i dont think failure of basic accounting will be a problem, could be wrong though. Im still learning and if im not confident then an umbrella will be the route i take.

To be honest mate i dont know if they have been investigated and come clean.

Use the HMRC tool or get your contract checked by an expert. Then you'll know for certain. And working for £120 a day is not a good place to start but it's up to you to sort out your contracts.

[jrshubrook]

Use the HMRC tool or get your contract checked by an expert. Then you'll know for certain. And working for £120 a day is not a good place to start but it's up to you to sort out your contracts.

I will get it checked professionally for the basis of this thread though...


I just checked with the manager at the recruitment consultancy its gone through and he has confirmed its outside IR35.

[jrshubrook]

Put your figures into this and see what comes up;

https://www.nixonwilliams.com/free-r...pay-calculator

Cheers, tried out the calculator fairly happy with the take home pay on that.

Its about what I calculated give or take.

[jrshubrook]

Just because your mates do it doesn't make it right. If they want to take the risk then that's their problem. You are asking us and three of us have said the same. This is not clear cut. There are two many factors pointing to a problem with IR35 and we have no idea what you know about it to be able to take your word that you are outside.

IMO you've two issues here. Your IR35 status is highly questionable. Get a contract check from QDOS for £99 to be sure.
Second is you don't actually know what the figures are. Calculators are highly inaccurate so you need to speak to an actual brolly to find out for sure.

Time to get on with both those tasks.

Thanks for the advice

Will get a professional to have a look and then go from there when I know i'm definitely outside IR35.

hypothetically though if I am outside IR35 then do my calculations work? on the basis there is no other expenses like insurance etc. which will have to be included before going ahead if needed.

[Maslins]

I'd agree with most of the other posts on here. Go umbrella.

I appreciate you're keen and have seen there may be modest tax savings to make by using your own Ltd Co...but you're taking on a fairly big responsibility and don't want to use an accountant to assist. It's simply not a good idea IMHO. However, several others have said the same and you've ignored them, so I'm sure you'll ignore me too!

[stek]

I will get it checked professionally for the basis of this thread though...


I just checked with the manager at the recruitment consultancy its gone through and he has confirmed its outside IR35.

The agent will say anything to get his commission, he won't care less if it is or it isn't or if your get shafted or not.

It's dod eat dog I'm afraid, and as a Ltd it's business, you aren't protected by employment law or rules.....

[northernladuk]

I will get it checked professionally for the basis of this thread though...


I just checked with the manager at the recruitment consultancy its gone through and he has confirmed its outside IR35.

Did his lips move when he said it?

[jrshubrook]

Did his lips move when he said it?

As you said I think the best way to avoid doing myself over is to get the contract professionally checked and then go on from there I suppose

[northernladuk]

As you said I think the best way to avoid doing myself over is to get the contract professionally checked and then go on from there I suppose

Make sure you get the full check. Working practices as well as contract. What you do at the client can trump your contract.