Quick Contractor Perks Roundup

[MarillionFan]

So I wasn't paying a huge amount of notice to the budget for contractors, but effectively was there no changes to expenses, dividends, tax etc for contractors in the last budget in the end.


Did it all just go quiet, and if so was a temp reprieve and so safe to contract for a year, or a perm reprieve.

[TheFaQQer]

Inside IR35 and subject to supervision, direction or control = no travel and subsistence expenses.

Public sector will have new rules from next year to determine whether you're inside or outside and they will deduct tax and NI automagically.

We got shafted last year rather than this.

[MarillionFan]

Inside IR35 and subject to supervision, direction or control = no travel and subsistence expenses.

Public sector will have new rules from next year to determine whether you're inside or outside and they will deduct tax and NI automagically.

We got shafted last year rather than this.

So if I spin up a LTD next month and crack on contracting for the rest of the year, ensuring I am outside of IR35 and not subject to supervision, direction or control I can claim expenses correct?


Frankly I'll be in a situation where I'd like to go back contracting for 2016/2017, but I can't take a salary as I will already have hit the high rate tax level when I cash in all of my shares.


So I'm thinking of just contracting, and accumulating it in the bank & just pay expenses until which point I can close down in a future year & take entrepreneurial relief. Does that seem a sensible plan?

[northernladuk]

You tried searching or speaking to your accountant?

[Pondlife]

So if I spin up a LTD next month and crack on contracting for the rest of the year, ensuring I am outside of IR35 and not subject to supervision, direction or control I can claim expenses correct?


Frankly I'll be in a situation where I'd like to go back contracting for 2016/2017, but I can't take a salary as I will already have hit the high rate tax level when I cash in all of my shares.


So I'm thinking of just contracting, and accumulating it in the bank & just pay expenses until which point I can close down in a future year & take entrepreneurial relief. Does that seem a sensible plan?

When was the last time you closed a ltd and took ER? Will it look like rinse and repeat phoenixing?

I'd suggest you have a wander over to L&A to see the changes to divvies.

[MarillionFan]

You tried searching or speaking to your accountant?

No and yes, but she was busy.


Searching is for the proles.

[mudskipper]

So I wasn't paying a huge amount of notice to the budget for contractors, but effectively was there no changes to expenses, dividends, tax etc for contractors in the last budget in the end.


Did it all just go quiet, and if so was a temp reprieve and so safe to contract for a year, or a perm reprieve.

New divvy tax.
T&S OK for outside IR35 (despite misinformation abound)
Corp tax going down next year.

Avoid public sector and you're good for a year or two.

[MarillionFan]

When was the last time you closed a ltd and took ER? Will it look like rinse and repeat phoenixing?

I'd suggest you have a wander over to L&A to see the changes to divvies.

4 years since I last took ER.

[TheFaQQer]

4 years since I last took ER.

Sounds like a plan to start out, with the intention of a full return (and so you can argue that the locations are temporary), and leave the money in the account for the year unless you need it.

Stay outside IR35, stay away from public sector until the rules are clarified (and probably after that too), and welcome back

[mudskipper]

IPSE tax events in Guildford (19th) and Reading (20th) if you want to get back up to speed quickly.

You don't need to be a member to attend, but if you do want to join see here

See https://www.ipse.co.uk/events for details