Limited company to Umbrella, will that avoid ir35 issues

[doubledragon]

Hi,

I am a new IT contractor seeking advice.


If my limited company is going to be closed down , from an audit or similar , can I switch to a Umbrella company and stay contracting?

I am thinking of swapping to a cheaper accountant, but they dont seem too familiar with the ir35 policies .

I started looking through the topics and reading on this site and it was very time consuming to find the info - so was hoping I could ask.

Thanks in advance

James

[northernladuk]

Yes you can and ir35 won't be an issue if you are brolly. Cheap accountants can cost you a lot of money and heartache so stay away from them.

Lisa runs contractorumbrella and posts on here regularly so you should give them a call first.

[Dactylion]

Yes you can and ir35 won't be an issue if you are brolly. Cheap accountants can cost you a lot of money and heartache so stay away from them.

Lisa runs contractorumbrella and posts on here regularly so you should give them a call first.

A bit like traffic isn't an issue if you walk blindfold down the middle lane of the M1?

[northernladuk]

A bit like traffic isn't an issue if you walk blindfold down the middle lane of the M1?

The north or south carriageway?

[LisaContractorUmbrella]

Hi,

I am a new IT contractor seeking advice.


If my limited company is going to be closed down , from an audit or similar , can I switch to a Umbrella company and stay contracting?

I am thinking of swapping to a cheaper accountant, but they dont seem too familiar with the ir35 policies .

I started looking through the topics and reading on this site and it was very time consuming to find the info - so was hoping I could ask.

Thanks in advance

James

Hi James

Yes you can move to an umbrella company IR35 won't be an issue as you will be paid via PAYE.

[centurian]

Depends what you mean by "issue".

If you mean the worry and hassle of being investigated in regards to IR35, then no.

If you mean incurring the costs of being in IR35, then a PAYE umbrella doesn't help - as you get taxed as if you are inside IR35 anyway - in fact slightly worse.

[NotAllThere]

...If my limited company is going to be closed down , from an audit or similar...

What the heck does that mean?

[SlipTheJab]

Depends what you mean by "issue".

If you mean the worry and hassle of being investigated in regards to IR35, then no.

If you mean incurring the costs of being in IR35, then a PAYE umbrella doesn't help - as you get taxed as if you are inside IR35 anyway - in fact slightly worse.

Especially with the T&S changes coming in in April, brollies just got even less appealing...

[VectraMan]

What the heck does that mean?

I think it means he's already been caught and is hoping by closing down the Ltd. and joining a brolly he can evade the tax he owes.

[SlipTheJab]

I think it means he's already been caught and is hoping by closing down the Ltd. and joining a brolly he can evade the tax he owes.