Contracting with Umbrella + Extra work

**malvolio** · 2 April 2007, 12:31

Make sure your umbrella can cope with you having two concurrent clients . That said, it will be a lot easier to manage if you have your own company - separate contracts, so you get two income streams. No problem, just sit back and count the cash.

Don't know about the new job being inside IR35 (although, as always, I doubt it and people who assume it is are usually wasting their money) but work for your old employer definitely will be. You will need to be careful about how you sort the tax side out.

**ASB** · 2 April 2007, 12:38

Originally posted by malvolio

but work for your old employer definitely will be

Definitely That's putting a bit strongly. I agree there is a very good chance but as ever if the terms are right then there is no reason for it to be caught. Sort out deliverables, risk and all the usual then there is no reason why the work for the old company is not outside.

**inertia** · 2 April 2007, 12:47

I will also point out that 90% of the work will be done remotely....and on an ad-hoc project based basis.

**malvolio** · 2 April 2007, 13:20

Originally posted by inertia

I will also point out that 90% of the work will be done remotely....and on an ad-hoc project based basis.

So? Neither are IR35 pointers.

If you are doing your old job for your old employers but on a contract basis then that is what IR35 is all about: it is escapable but only with a degree of difficulty. If you are doing a clearly different role for them, then the usual set of tests apply and it's no more likely to be caught than any other contract.

**inertia** · 2 April 2007, 14:04

I think i'm now more confused than was before ........!

**ASB** · 2 April 2007, 14:15

Originally posted by inertia

I think i'm now more confused than was before ........!

Ok,

If the continuing role for your previous employers is "hers a bit of work, it's X an hour, go do it" (i.e. effectively your old job) then you are going to have a hard time estabilishing that as outside IR35.

If it is "how much for this" then you should be able to defend it reasonably easily.

Depending on the likely volume of work I would imagine for this you are better setting up your own company. [If you do do this I can't see any point is using an umbrella for your main contract - irrespective of whether it is in or our of IR35 anyway]

**VectraMan** · 2 April 2007, 20:27

What you could do is setup your own Ltd. company for the part time work, but just leave the money in the company, which means you don't need to worry about tax in the short term. If you think you're going to continue contracting, then in 6 months time you can switch everything to using your Ltd. and start paying yourself out of that.

It depends whether you think contracting is a short term thing or not. Your own Ltd. will always be better in the long run.

**inertia** · 2 April 2007, 20:39

Thanks vectraman....
that's what i thought of doing....
....just checking that was a sensible thing to do....

**inertia** · 2 April 2007, 20:57

Is SJD Accountancy a good quick and easy way to do it.
Or just DIY it.....?

Sorry about all the questions...just all new to me.

Contracting with Umbrella + Extra work