Considering a new public sector role.

[PurpleGorilla]

Excellent rate advertises but it's with MOD so inside the new IR35.

Given my ltd is well setup to pay health care and pension and salaries and dividends to me and my company secretary - I can't even begin to get my head round the impact on the business of taking on an inside ir35 contract.

If the tax is skimmed by the agent at source - would the money be paid into the ltd or into my personal account.

How the hell do you keep a Ltd co running in such circumstances!

[eek]

Excellent rate advertises but it's with MOD so inside the new IR35.

Given my ltd is well setup to pay health care and pension and salaries and dividends to me and my company secretary - I can't even begin to get my head round the impact on the business of taking on an inside ir35 contract.

If the tax is skimmed by the agent at source - would the money be paid into the ltd or into my personal account.

How the hell do you keep a Ltd co running in such circumstances!

With difficulty. Personally for an inside IR35 contract (which would need to be local to be worthwhile - remember no expenses) I would be using an umbrella and maximising my pension payments...

An umbrella will need to pay you National minimum wage x 35 after tax but the rest can go straight into your pension pot.

[northernladuk]

With difficulty. Personally for an inside IR35 contract (which would need to be local to be worthwhile - remember no expenses) I would be using an umbrella and maximising my pension payments...

An umbrella will need to pay you National minimum wage x 35 after tax but the rest can go straight into your pension pot.

Indeed. There is, in fact, less to get your head around here than running a normal LTD in a private sector gig to be fair.

[PurpleGorilla]

Indeed. There is, in fact, less to get your head around here than running a normal LTD in a private sector gig to be fair.

I guess I want my cake and eat it!

[Patrick@Intouch]

The remuneration would be made to the company and the rest is accounting transactions.

Effectively the profit will, in most cases be eaten up by the "salary" and associated taxes that have been processed by the fee payer.

If you have retained profits in the business then you can continue to pay the second salary and make pension contributions to the extent that these retained profits allow.

If you are considering a public sector contract at this time then it would be advisable to speak with the end client for an indication of their view of your proposed contract in relation to the new rules for off payroll public sector workers.

If their view is that you are inside then it might be time to negotiate the day rate and if not then happy days.

You may not find it as easy as I have suggested to get a definitive answer to that question at the moment and so timing may be a factor to consider also.

If making pension contributions through employed income then your contributions would be limited to the amount of salary that you take thereby limiting the benefit to you.

[eek]

The remuneration would be made to the company and the rest is accounting transactions.

Effectively the profit will, in most cases be eaten up by the "salary" and associated taxes that have been processed by the fee payer.

If you have retained profits in the business then you can continue to pay the second salary and make pension contributions to the extent that these retained profits allow.

If you are considering a public sector contract at this time then it would be advisable to speak with the end client for an indication of their view of your proposed contract in relation to the new rules for off payroll public sector workers.

If their view is that you are inside then it might be time to negotiate the day rate and if not then happy days.

You may not find it as easy as I have suggested to get a definitive answer to that question at the moment and so timing may be a factor to consider also.

If making pension contributions through employed income then your contributions would be limited to the amount of salary that you take thereby limiting the benefit to you.

I take it you missed the first sentence in the OP's post?

MOD role so inside (as the MOD have already stated they are treating roles as inside to begin with).

[Patrick@Intouch]

Certainly seems so, I was obviously just too darn keen to reply!!

[PurpleGorilla]

I take it you missed the first sentence in the OP's post?

MOD role so inside (as the MOD have already stated they are treating roles as inside to begin with).

The question is, whether £700 a day makes it worthwhile...

[eek]

The question is, whether £700 a day makes it worthwhile...

And I thought I was doing well - need to negotiate a raise come renewal time.

I would think so its worthwhile. I suspect you could put £600-620 a day into your pension....

[PurpleGorilla]

And I thought I was doing well - need to negotiate a raise come renewal time.

I would think so its worthwhile. I suspect you could put £600-620 a day into your pension....

It's deliberately juicy to attract due to ir35