Director's re-imbursements

**Jessica@WhiteFieldTax** · 10 January 2015, 11:48

Alas no, as IR35 applies to company sales income on a contract by contract basis. It impacts on what you take out by virtue of this.

Worth a contract review to see if IR35 does apply to your contract income in due course, and maybe a discussion with an accountant or tax advisor specialising in the field who may be able to suggest changes to working arrangements to help WRT IR35.

**LisaContractorUmbrella** · 12 January 2015, 09:25

Under the circumstances, an umbrella company may be a good option for you

**Forbes Young** · 12 January 2015, 12:02

Originally posted by gettingangry View Post

I have a Ltd company that I used a couple of years ago. I then sold everything and re-joined the 9 till 5 rat race.

I now have a opportunity to start a 6 month contract which will more than likely be caught by IR35, and will be able to use the Ltd company again

I have not traded for over a year but I still own the Ltd company and as it stands am owed money from it (for the initial investment I made for equipment and stock etc).

Question: Can I fully reimburse myself before I start to concern myself with the IR35 rules?

If the company owes you money this is irrelevant really as, if you are caught by IR35 with this new contract, then you will need to pay the requisite amount of tax and NI on the total income from the contract - the balance left is yours to take including the monies that the company still owes you. When operating within IR35 with a ltd company, you can still claim 5% of turnover as an allowable cost as well as travel & accommodation to place of business (up to 2 years), insurance costs, some subs and company pension contributions. The balance then goes through the payroll. So generally you may well be still better off than operating through an Umbrella.

Director's re-imbursements