Limited company status after moving into umbrella (short term view)

[ConcordZen]

hi, recently joined this forum and this is my first post. I am looking to move into a new contract inside IR35 soon using an umbrella route. How long can I keep my limited company 'trading' (profit from previous years, but without any employee and/or income going forward) before I have to take action on closing it down or declaring it dormant. (Co. tax year ends in January).

Many thanks,

[northernladuk]

What did your accountant say?

[DolanContractorGroup]

hi, recently joined this forum and this is my first post. I am looking to move into a new contract inside IR35 soon using an umbrella route. How long can I keep my limited company 'trading' (profit from previous years, but without any employee and/or income going forward) before I have to take action on closing it down or declaring it dormant. (Co. tax year ends in January).

Many thanks,

Hi ConcordZen

I'm unsure who your current accountant is, but Contractor Umbrella offers free use of the umbrella service (yes, no margin deducted!) for Dolan Accountancy clients that wish to use umbrella for some of their assignments.

The benefit for limited company contractors is that they can continue to keep their company open for any outside IR35 work they get, and seamlessly use umbrella for any inside IR35 work.


Kind regards

Zeeshan

[pacontracting]

Hi ConcordZen

I'm unsure who your current accountant is, but Contractor Umbrella offers free use of the umbrella service (yes, no margin deducted!) for Dolan Accountancy clients that wish to use umbrella for some of their assignments.

The benefit for limited company contractors is that they can continue to keep their company open for any outside IR35 work they get, and seamlessly use umbrella for any inside IR35 work.


Kind regards

Zeeshan

I was under the impression that IR35 determination only applies to people supplying their services via a Ltd Co - so if you are supplying your services via an Umbrella, IR35 determination doesn't apply and whether a contract is inside or outside is immaterial.

Shows what I know.

[northernladuk]

I was under the impression that IR35 determination only applies to people supplying their services via a Ltd Co - so if you are supplying your services via an Umbrella, IR35 determination doesn't apply and whether a contract is inside or outside is immaterial.

Shows what I know.

As does another post. A worrying trend.

[DolanContractorGroup]

I was under the impression that IR35 determination only applies to people supplying their services via a Ltd Co - so if you are supplying your services via an Umbrella, IR35 determination doesn't apply and whether a contract is inside or outside is immaterial.

Shows what I know.

Hi pacontracting,

You're right in that the legislation only affects Ltd company contractors, but if the end-client says that the role is inside-IR35 and/or they won't be entertaining Ltd Co's, then the only other option for the contractor is to not take the role, or go umbrella (or go PAYE if the option is offered).


Thanks

Zeeshan

[eek]

As does another post. A worrying trend.

Really? A lot of people are just finding out about these changes and are entering the anger and/or denial phases.

Equally he does make a point as it's not clear.

Inside IR35 relates to the status - it basically means the client has determined the role to be one like employment / "payroll" role rather than a business to business relationship.

Payroll can be done in one of 3 ways, via PAYE, via umbrella or via IR35 using your PSC.

The sane options there are PAYE (if you want to earn money), umbrella if you want increased pension contributions - I don't think there is anyway that IR35 payments to your PSC make sense.

[rawly]

I don't think there is anyway that IR35 payments to your PSC make sense.

This.... 10/10