Just been offered to go perm Just been offered to go perm - Page 4
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  1. #31

    Still gathering requirements...


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    Quote Originally Posted by Hobosapien View Post
    Edit: May as well start with CUK's own info on this:Contractors, don't get lumbered with your limited company's tax bill
    and this

    IR35 taxes uncollectable if contractors’ company has no money

  2. #32

    Fingers like lightning


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    Quote Originally Posted by WordIsBond View Post
    Your insurance provider? Your MVL provider? What provider?
    IR35 tax loss insurance provider

  3. #33

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    Quote Originally Posted by Hobosapien View Post
    It depends. Limited liability protection is unlikely to be transferred to personal liability if due diligence on IR35 assessment to operate outside of it can be shown to be done. i.e. if you have contracts reviewed and have a written determination by a reputable third party then that shows you operated in good faith and it would take exceptional circumstances for HMRC to chase you personally for tax liabilities that fall under the PAYE system of the Ltd, so if the funds in the Ltd don't cover the liability then HMRC may win an investigation but not be able to collect the full amount they now say is due.

    The issue with 'it depends' is the potential for a lot of drawn out hassle and stress while an investigation is ongoing, so the approach of getting contracts reviewed and backed up with insurance is a good way of trying to cover that as best you can.

    Google 'IR35 and personal liability' for more information from accountants and those that have dealt with this scenario for real clients (contractors), that is the basis of my understanding of how this may apply.

    Edit: May as well start with CUK's own info on this:Contractors, don't get lumbered with your limited company's tax bill
    For the last 10+ years I have always presumed if I was found inside then everything would automatically become due... Guess this is great for me as i have always had reviews etc

  4. #34

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    Quote Originally Posted by dx4100 View Post
    IR35 tax loss insurance provider
    Ok, so they are telling you to keep paying them premiums after your company is closed. That works well for them.

    There's no evidence this is necessary. It does provide you protection in case HMRC do something they've never done before -- pursue an IR35 case after the company is closed. Maybe in this brave new world we are entering that will be necessary. I'd say the risk is very, very low, but if so I don't know why it stops after two years. But the point of insurance is to protect against risk, so you measure how great you think the risk is, in terms of likelihood and impact, and set it against the cost of the insurance, and decide whether it is worth it.

  5. #35

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    Quote Originally Posted by WordIsBond View Post
    Ok, so they are telling you to keep paying them premiums after your company is closed. That works well for them.

    There's no evidence this is necessary. It does provide you protection in case HMRC do something they've never done before -- pursue an IR35 case after the company is closed. Maybe in this brave new world we are entering that will be necessary. I'd say the risk is very, very low, but if so I don't know why it stops after two years. But the point of insurance is to protect against risk, so you measure how great you think the risk is, in terms of likelihood and impact, and set it against the cost of the insurance, and decide whether it is worth it.
    Well it comes down to your attitude to risk I suppose...

    If you think there is no coming after you then you wouldn’t need either the investigation insurance or tax loss insurance beyond company closure . My attitude to risk is a little more prudent than that.

    Each to their own

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