Contractor (ltd)   considering umbrella -  What to do with limited company Contractor (ltd) considering umbrella - What to do with limited company - Page 2
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  1. #11

    Contractor Among Contractors


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    Quote Originally Posted by dx4100 View Post
    The win for HMRC has always been a mixture of forcing / scaring people in Umbrellas - their weapon for this are investigations. Regardless if they win or lose they create fear by doing investigations. And that tax take is much more than modest gains by forcing / scaring thousands of contractors into umbrellas.
    Agreed...so if lots of Ltd Co contractors are already moving to umbrellas/permie anyway, it surely eliminates that motive?

    There will likely be lots of closures over the next 6-12 months. HMRC won't be able to rush through one massive high profile case in the first month of that time window as a precedent to scare the others. Any case will take years. So they'd basically need to challenge every case, which would cost them huge sums, and no guarantee they'd win (m)any of them. Given after the next 12 months the numbers of contractors going through MVLs will likely plummet, any added fear element is largely irrelevant.

  2. #12

    Some things in Moderation

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    Until April next year, any diligent contractor can face down an investigation.

    They will have had all of their contracts reviewed, their working practices are outside IR35 and they have evidence to prove it, and they are insured,

    With that in place, no-one should worry when they go through MVL.

  3. #13

    Nice But Dim

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    Personally I'll be keeping my Ltd ticking over if I end up working via a brolly etc.

    It can carry on making pension contributions from retained profits and it's there if I pick up work on the side that doesn't get caught under the post April rules. If it makes a net loss as a result then that can be carried back to the previous year for a rebate.

    As and when I get back to working outside (it will happen eventually as it has in the public sector) then there are funds available to pay dividends to maintain cash flow while I wait for invoices to be paid.
    "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

  4. #14

    More time posting than coding


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    Quote Originally Posted by DaveB View Post
    It can carry on making pension contributions from retained profits and it's there if I pick up work on the side that doesn't get caught under the post April rules. If it makes a net loss as a result then that can be carried back to the previous year for a rebate.
    Get advice on incurring a trading loss due to pension contributions. Seems to be a grey area.

  5. #15

    Nice But Dim

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    Quote Originally Posted by adubya View Post
    Get advice on incurring a trading loss due to pension contributions. Seems to be a grey area.
    There will still be other costs incurred for accountancy, insurance, web hosting, subscriptions etc. Not much but it adds up over time and it's worth accounting for.
    "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

  6. #16

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    Quote Originally Posted by DaveB View Post
    There will still be other costs incurred for accountancy, insurance, web hosting, subscriptions etc. Not much but it adds up over time and it's worth accounting for.
    I don't think that's what was being referred to. See this thread/post (point 3):

    https://www.contractoruk.com/forums/...ml#post2499505

    and

    https://www.contractoruk.com/forums/...y-pension.html
    Last edited by Paralytic; 22nd November 2019 at 17:05.

  7. #17

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    Quote Originally Posted by Paralytic View Post
    I don't think that's what was being referred to. See this thread/post (point 3):

    https://www.contractoruk.com/forums/...ml#post2499505

    and

    https://www.contractoruk.com/forums/...y-pension.html
    Exactly

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