New contractor - Should I start before April 2019? New contractor - Should I start before April 2019?
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  1. #1

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    Question New contractor - Should I start before April 2019?

    Hi,

    I'm a wannabe contractor. I was originally looking to start after purchasing a house as a permie in ~October 2019, but due to the IR35 changes I have been persuaded to potentially start earlier to get a year in outside of IR35, and buy a house 12 months after starting as a contractor instead.

    My question is; should I start before the next tax year, so I can get a full 365 days outside of IR35?

  2. #2

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    What's this 365 days outside IR35 stuff? Who's told you this?
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  3. #3

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    Quote Originally Posted by northernladuk View Post
    What's this 365 days outside IR35 stuff? Who's told you this?
    I mean IR35 being introduced in the private sector from April 2020

  4. #4

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    Quote Originally Posted by dankmemes View Post
    I mean IR35 being introduced in the private sector from April 2020
    Er, IR35 has already been introduced in the private sector.

    I know what you think you mean, but it's coming out all garbled.

    Look for a contract, establish (and evidence) the status of that contract w/r to IR35, decide whether to accept it, and then pay your taxes appropriately. The same applies now, as ten years ago, as after April 2020.

  5. #5

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    I think you are completely misunderstanding IR35. Have a look on the right, there are a load of links including IR35. Have a read up on those, and use Google to look for more.

    Once you've done that we'll be happy to try help on anything specific.
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  6. #6

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    Quote Originally Posted by dankmemes View Post
    I mean IR35 being introduced in the private sector from April 2020
    Being inside or outside of IR35 has nothing to do with the date. Even after April 2020 private and public companies can still use contractors that can be classed as outside of IR35, or as is the case now (pre April 2020), inside. It's an assessment of your contract and working practices, not a status which is flipped by a date.

    There are a lot of links out there, it's still a mind bender and pretty vague and subjective, but a good thing to start trying to understand if you plan to go contracting.

    Good luck

  7. #7

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    If your reason for going contracting is financially based and you will be requiring a mortgage for the house purchase then you may be better staying permie until the mortgage has been sorted as there is no guarantee of income when contracting, so you may find it more difficult to get a mortgage in contract.

    Read up on mortgages for contractors as well as IR35 and don't make a life changing decision until you are sure you know what to expect and it is the right course of action for your circumstances.
    Maybe tomorrow, I'll want to settle down. Until tomorrow, I'll just keep moving on.

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    Regardless of IR35, I'd say don't wait.
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  9. #9

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    Hi,

    I would suggest (like others have) to read up more on IR35 so you are more aware of what it is and how it will impact you moving forward. Beyond IR35 make sure you have everything else planned out. Speak to an accountant or accountants to get their input into the Mortgage situation, it also gives you an idea on what to expect moving forward.

    As for timing, jump in when you feel you are ready and are armed with all the facts, oh and of course have a contract to start

    Enjoy.

    WLB

  10. #10

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    Quote Originally Posted by WLB2018 View Post
    Hi,

    I would suggest (like others have) to read up more on IR35 so you are more aware of what it is and how it will impact you moving forward. Beyond IR35 make sure you have everything else planned out. Speak to an accountant or accountants to get their input into the Mortgage situation, it also gives you an idea on what to expect moving forward.

    As for timing, jump in when you feel you are ready and are armed with all the facts, oh and of course have a contract to start

    Enjoy.

    WLB
    I'd suggest the OP goes one further than that and goes to speak to the likes of Freelance Financials to understand what mortgages are available and what the lending criteria is. I don't think an accountant will have the details the OP really needs.
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