Contract Extension

[rp83]

OP you know that, based on the same rate, you're take home is going to be massively less through umbrella/inside?

Did you ask for an increase? You're gonna need about 35%.....

I did, however, there was no budget (as usual!). Options I have are fairly limited, i.e. two I listed above if I don't want to eat into my savings

I just spoke with our internal IR35 expert (or so one claims!), I am told, taking a break and starting a new contract makes no difference at all! I wonder, if there is any point in taking a break in that case?

Also, if someone can help me un-tangle one particular thing, on this (and various others), I have read that one of the biggest worry we/contractors have is using the same agency for roles moving from outside to inside is a concern.

How does that work for someone who is working at the client through recruitment agency.

Currently - My Ltd company -> Invoice Recruitment Agency -> Invoice Client (other way around for payment)

Future - Me -> Umbrella Company -> Recruitment Company -> Client (other way around for payment)

[WordIsBond]

With all that going on, strongly considering closing the Ltd company down and have gotten a quote to do so. That said, with all the moving pieces to IR35, am I right in assuming, I should leave it open because if/when HMRC decides to knock on the door, my Ltd company will be liable to pay Employer Tax and Employer NI? Any views will be appreciated.

No, this is a bad assumption. If you were inside, YourLtdCo should have been operating PAYE taxes and sending them to HMRC. If YourLtdCo didn't do that, YourLtdCo owes HMRC money.

So HMRC won't come knock on your door, they'll come knock on the door of YourLtdCo. If YourLtdCo doesn't exist anymore, they'll knock a long time, won't they? It's a company liability.

Now, there is the fact that you are the director. If they can prove fraud or deliberate malfeasance or something like that, they can try to pierce the corporate veil and hold you personally responsible. If they can prove that, they'll do so whether YourLtdCo is still open or not. If you have a contract review showing you were outside, they'll never succeed in that. And I don't believe they've ever tried to pierce the corporate veil on an IR35 case.

So there's absolutely nothing to be gained by keeping the company open, and if it is closed by the time they get around to matching up your name with before and after, they probably won't even look any further. If it is open, they might. Getting it closed might forestall an investigation.