Newbie - Inside/Outside IR35 - Help!

[snk888]

I am currently as an Umbrella, But I thought about going down the LTD company route. (which I am new to).

Got a quote from an accountancy firm explaining payment breakdown with in/outside IR35, Outside has a more take home pay.

I am still can't work out which one I should go for, or should I just stay as Umbrella?

Thanks

[northernladuk]

Deffo stay umbrella. If you went LTD you'd be on your own so put a good amount of effort in to researching and learning stuff for yourself.

If you do think you are up for it. Read all the links to the right hand side, starting with the first timers guide and then come back with some specific questions we can actually answer.

[BlackCountryContractor]

Hi snk888

Best advice would be to stick with a brolly and wait out till October 29th and then get a clearer picture with the autumn statement (This will contain important information about upcoming changes to LTD companies concerning IR35 and the way we pay taxes as a ltd company) but there is nothing stopping you going ltd now but my two pennies is that ltd won't be a viable tax efficient way to contract past the 6th of April 2019 so you only have at best have 6 months to really enjoy contracting via ltd.

[craigy1874]

Hi snk888

Best advice would be to stick with a brolly and wait out till October 29th and then get a clearer picture with the autumn statement (This will contain important information about upcoming changes to LTD companies concerning IR35 and the way we pay taxes as a ltd company) but there is nothing stopping you going ltd now but my two pennies is that ltd won't be a viable tax efficient way to contract past the 6th of April 2019 so you only have at best have 6 months to really enjoy contracting via ltd.

Unless you are genuinely outside of IR35 then you will/should have nothing to worry about...

[Lance]

Unless you are genuinely outside of IR35 then you will/should have nothing to worry about...

Indeed. There's plenty of outside IR35 roles even in the public sector. The ones that are inside always were and lack of compliance by the PSCs was the issue.

[BlackCountryContractor]

Unless you are genuinely outside of IR35 then you will/should have nothing to worry about...

Given the fact with hind sight when they rolled the IR35 reforms in the public sector, it would be unwise to say that the mass IR35 blanketing that occurred will not happen again with the pending IR35 reforms for private sector. Also it is simply not financially feasible for companies to do a case by case IR35 assessment of contractors on their projects, I'm simply going to fold my arms smoke my pipe and quietly wait till April when the deluge of posts come from people who originally thought they were outside of IR35 only to be told other wise by blanket decisions by clientco.

[DeludedKitten]

Given the fact with hind sight when they rolled the IR35 reforms in the public sector, it would be unwise to say that the mass IR35 blanketing that occurred will not happen again with the pending IR35 reforms for private sector. Also it is simply not financially feasible for companies to do a case by case IR35 assessment of contractors on their projects, I'm simply going to fold my arms smoke my pipe and quietly wait till April when the deluge of posts come from people who originally thought they were outside of IR35 only to be told other wise by blanket decisions by clientco.

Blanket decisions under the current legislation are generally illegal because they fail the statutory duty of care. That's not to say that they all are, but in many cases they are and people should be challenging them rather than accepting them.

[Lance]

Blanket decisions under the current legislation are generally illegal because they fail the statutory duty of care. That's not to say that they all are, but in many cases they are and people should be challenging them rather than accepting them.

and this, if it comes to the private sector, will ensure that clients improve their understanding.

What will likely happen is that those contractors who are directed and controlled will end up with inside contracts. And genuine independent contractors will not only be outside, but will have less risk of flawed attempts by HMRC to shaft them.

[PerfectStorm]

I'm hoping that the private sector will be a bit more intelligent about it and make themselves comply with 'outside IR35' policy via a few token methods

[malvolio]

I'll give good odds that clients hand the decision off to the agency and go with their advice on any given role. Agencies are, after all, the real experts on IR35, disguised employment, proper use of CEST and B2B contractual arrangements for temporary staff.

Oh, hang on...