New contractor question...

[McKieThanks]

So firstly, hello, I'm new to this forum and also contracting as a whole. I graduated university this year and am now in a permanent web development role. I am not enjoying the job at all and have always wanted to run my own company anyway so contracting seems like a good idea.

During university I picked up a number of clients for which I do sporadic web development work, the odd £1,000 here and there.

My question is, if I became a contractor and registered a limited company, would I be able to bill these little jobs here and there through the company, and how would this affect my IR35 status?

At a guess I'd hope it would demonstrate that I do not work just for one company.

Any thoughts would be appreciated

[chicane]

My question is, if I became a contractor and registered a limited company, would I be able to bill these little jobs here and there through the company

Yes - although bear in mind that if your limited company turnover exceeded the current VAT threshold you'd need to start charging them VAT - which they may not like if they're one man bands or small businesses that are not VAT registered.

and how would this affect my IR35 status?

At a guess I'd hope it would demonstrate that I do not work just for one company.

Strictly speaking, each of your contracts should be independently assessed for IR35 compliance and the method by which your limited company pays you should vary accordingly for each contract. You therefore don't have an "IR35 status" as a contractor - but each of your contracts will.

I wouldn't place too much emphasis on working for more than one client as a viable IR35 defence - although others will argue otherwise.

[Moscow Mule]

I wouldn't place too much emphasis on working for more than one client as a viable IR35 defence - although others will argue otherwise.

That said though, if you're only getting paid for the work you are doing and can pick and choose what work you do then you will be well clear of IR35.

[moorfield]

During university I picked up a number of clients for which I do sporadic web development work, the odd £1,000 here and there.

Good luck with it! Very tricky market at the moment but I guess if you're young-free-single you'll have more options. Worth picking up some niche web related skills asap if you have the chance to distance yourself from the competition.

[McKieThanks]

From what I have read, I got the impression that as the economy as a whole picks up, contractors are in high demand? I won't be leaving my current job until the end of February and until then I plan on spending the majority of my spare time learning new skills.

[northernladuk]

The thing you want to be most worried about is getting decent roles. Newly qualified with little experience doesn't exactly cut it in a market where the reason a company would go to a contractor is for someone that can hit the ground running with a wealth of experience. Especially with a downturn on.

There is also a difference between being a company director/owner and a contractor. Most of us have our own companies for the tax perks and not because we yearn to be the owner of a profitable new company.

You need to have a think about which of the two you are going to. Farm your ass out like most do or be a proper company with empoyees offering services/goods.

[McKieThanks]

I wouldn't say I'm looking for 'decent' roles. Anything upward of equivalent £150 per day would be scrumptious compared to my current position. I have seen a few asp.net c#/php/ajax/js/css/xhtml/mvc/seo/jquery etc jack of all trades contracts offering ~£250 per day.

I realise it's not quite the same as buying goods, selling for profit and hiring people kind of running ones own company, but its the idea of choosing the more complicated life for better money that interests me. I also like the idea of putting my £3,000 rail season ticket down as an expense.

[stek]

I also like the idea of putting my £3,000 rail season ticket down as an expense.

Remember though ur not saving £3k, just the amount offset against tax...