Pulling the trigger on an inside IR35 gig

[zerosum]

This tax year I've had a couple of gigs through my limited. I paid a minimal salary and a dividend up to the 7.5% rate.

Discussing an inside IR35 umbrella role (client and agency both quite distinct from anything done before). I'm aware this will cause extra tax to be due also on the dividend depending how long the engagement goes on for.

I may well pull the trigger on MVLing my limited in the course of the tax year, depending how things go.

Is there anything else to be mindful of? Umbrella is asking me for a P45, which I obviously don't have, and it makes me wonder if there are any known/unknown known/unknowns I'm not factoring in.

[ladymuck]

A P45 is easy enough to produce. You don't have to wait to shut down your company to get one of those.

[GhostofTarbera]

Pulling the trigger on an inside IR35 gig

Forget P45 they will put you on emergency tax code - sorted

What happens if you get canned from next contract and next 10 are outside IR35 ?


You will end up With between 52-54% of the gross rate into your personal account from the umbrella

With no expenses obviously

Sent from my iPhone using Contractor UK Forum

[zerosum]

What happens if you get canned from next contract and next 10 are outside IR35 ?
Sent from my iPhone using Contractor UK Forum

Yeah definitely, I wouldn't bin the limited just because of this gig, and I'm aware of the 2y wait (if liquidating) until opening another co. I've been mulling it for a while.

[TheCyclingProgrammer]

Have you confirmed with the umbrella that the advertised rate is before or after employer NIC? AFAIK the advertised rate is supposed to be net of any employer NIC but as we've seen on here it's common for the employer NIC to be deducted from the advertised rate.

Is there any reason why you couldn't put this through your Ltd and save on the umbrella fees?

[eek]

Have you confirmed with the umbrella that the advertised rate is before or after employer NIC? AFAIK the advertised rate is supposed to be net of any employer NIC but as we've seen on here it's common for the employer NIC to be deducted from the advertised rate.

Is there any reason why you couldn't put this through your Ltd and save on the umbrella fees?

If you go through your limited company you will received deemed payments with employer NI and other items deducted before your company receives the money.

So keep it simple and use an umbrella for this type of thing.

[zerosum]

Have you confirmed with the umbrella that the advertised rate is before or after employer NIC? AFAIK the advertised rate is supposed to be net of any employer NIC but as we've seen on here it's common for the employer NIC to be deducted from the advertised rate.

Good call, but I got a spreadsheet breakdown and employer NICs have been factored in.

Is there any reason why you couldn't put this through your Ltd and save on the umbrella fees?

Have to use one of their 'recommended' umbrellas; presumably there are kickbacks involved. It's public sector also...

It's a little bit complicated by the fact that I am planning to move to an EU country, so would be tax resident there from next year. (It's a country which taxes work based on being *sourced* in that country, however, rather than *performed* there as is the norm). At which point I will propose working via a ltd I plan to set up over there, as probably the only viable solution. Another factor to mull in possibly closing the UK ltd.

[eek]

Good call, but I got a spreadsheet breakdown and employer NICs have been factored in.

Have you received a Key Information Document and how was the rate advertised to you?

[zerosum]

Have you received a Key Information Document and how was the rate advertised to you?

I got a key facts page; employer's NI, pension contribution, apprenticeship levy, holiday pay are deducted from the umbrella income, and their margin; PAYE and employee NI and pension contribution from my end. Rate was advertised daily gross.

[GhostofTarbera]

I got a key facts page; employer's NI, pension contribution, apprenticeship levy, holiday pay are deducted from the umbrella income, and their margin; PAYE and employee NI and pension contribution from my end. Rate was advertised daily gross.

And net was 52-54% of gross rate ?


Sent from my iPhone using Contractor UK Forum