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Carter
26th April 2017, 08:43
I worked through my own PSC for 10 years but took a break for 4 years to run a 'proper' consultancy business though the Limited Company - it now has other turnover, employees, an office etc. I've now been offered a contract (whcih is too good to turn down) which the agency has deemed to be in IR35.

Some of the revenue that I'll be getting from the contract, will be used to reinvest back into the company - pay a few bills, and also pay for someone to backfill my role in the company.

Three questions - 1) Will the effect the IR35 status of the contract?, and 2) How will this effect what I pay in terms of deemed PAYE, corporation tax, 3) As the company has previous years loss to be offset against next years corporation tax, will this effect the IR35 payments etc?

Thanks

TheFaQQer
26th April 2017, 09:31
Since the contract is inside IR35 and in the public sector then the invoices will be paid net of National Insurance and PAYE based on your tax code.

Having more employees, a real business, anything else is immaterial if you are inside and in the public sector because the law is that the invoices must be paid net and the taxes paid by the fee payer to HRMC.

Patrick@Intouch
26th April 2017, 10:33
I agree with The Faqqer.

The fact that this contract is inside IR35 and in the public sector essentially means that the income from this contract will be taxed as though you were and employee.

You could also consider running this separate income through an Umbrella solution to save muddying the waters.

We have a solution which allows clients to run a limited company and use our Umbrella function in tandem.

fidot
26th April 2017, 11:10
which just points out the complete stupidity as the OP could presumably send one/many of his employees to complete the work