Umbrella to PSC timing - now or next financial year?

[DallasDad]

Is it worth me switching from my Umbrella and going PSC now or waiting to coincide it with the start of the next financial year?

I am pretty sure my current contract is caught by IR35 so I realise there not a massive financial advantage.
I do however want freedom to invest in a pension scheme of my choice which seemingly I can't do through my current Umbrella, and who knows, my next contract may well be outside IR35 anyway. So I think going PSC will be worthwhile on that basis alone.

I assume that if I do it now then in a few weeks time that would generate the need for my chosen contractor accountant to do some form of year end? and I also assume if I do it now I could find quite a lot of related paperwork to do myself so I assume I would have a fairly rapid learning curve over the next few weeks?

I am sure loads of you have been down this route so would appreciate any pointers please.

PS I did search but I have not seen this topic covered nor anything on the advantages? of going PSC versus Umbrella for those of us caught by IR35 or soon to be captured by this SDC malarkey.

[northernladuk]

Won't quitting your umbrella mid client mean you'll have to pay expenses back as the last engagement will be classed as permanent.

There is no need to have company and personal year ends the same. A decent accountant will handle it properly so makes no difference.

[DallasDad]

Won't quitting your umbrella mid client mean you'll have to pay expenses back as the last engagement will be classed as permanent.

Oooo I don't know............ but I suspect you could be right, bother! A good thing it has only been since 11th Jan so not a massive amount of money to pay back as my commute is only 50 miles a day.

I will put that on my ask the accountant list and yes I am looking at Gorilla I read you advice (or just for you 'advise') elsewhere on that already.

[DallasDad]

Ah, just engaged brain, did you mean last engagement as in the one before this one? Or my current engagement?
If the former then no I am a newbie so this is my first Gig.

[northernladuk]

Oooo I don't know............ but I suspect you could be right, bother! A good thing it has only been since 11th Jan so not a massive amount of money to pay back as my commute is only 50 miles a day.

I will put that on my ask the accountant list and yes I am looking at Gorilla I read you advice (or just for you 'advise') elsewhere on that already.

Lol very good

[TheFaQQer]

Won't quitting your umbrella mid client mean you'll have to pay expenses back as the last engagement will be classed as permanent.

IIRC, the guidelines on this changed. It used to be the case that when you resigned from your umbrella, that final contract couldn't be classed as a temporary workplace, but the guidance changed so that it was OK still as long as you could show that the location was temporary.

[TheFaQQer]

Ah, just engaged brain, did you mean last engagement as in the one before this one? Or my current engagement?
If the former then no I am a newbie so this is my first Gig.

Ah - in that case, you're going to struggle to show that this location is temporary because it's the only place that you've ever worked for this employer.

[mudskipper]

Ah - in that case, you're going to struggle to show that this location is temporary because it's the only place that you've ever worked for this employer.

There is some debate about intention - if you didn't intend it to be your only engagement, then it has been argued that you can claim up to the point when that intention changes. Probably best to check with the brolly about what they believe is allowable.

[DallasDad]

Thanks for bringing that issue up, it had not occurred to me.
You guys certainly seem to have a good handle on things.

It also sort of answers my original query.
I think I will wait till the start of the next tax year when my current ability to claim expenses would have ended anyway.

That way I can start with a clean slate for 2016/17 and I will sort out this years tax liabilities separately.
I am going to end up with a bill either way because I claimed JSA for a few weeks in the Autumn and that I believe is also taxable.

[pr1]

Oooo I don't know............ but I suspect you could be right, bother! A good thing it has only been since 11th Jan so not a massive amount of money to pay back as my commute is only 50 miles a day.

I will put that on my ask the accountant list and yes I am looking at Gorilla I read you advice (or just for you 'advise') elsewhere on that already.

Bear in mind that when you sign up with an accountant you're typically either bound in for a full year or will have to pay an exit fee if you leave, so make sure you're happy with your choice (ask around)

(I'm also with gorilla and think they're great but you shouldn't take blind advice - do some research)