New contractor needing help

[dx4100]

Hi All

Im just about to start contracting and I am confused about the best way to go about it.

The situation is as follows. I am going to start working on a project at nights and weekends for a company. If this is successful I will be handing my notice in at my main job and then starting work for this company on a 6 month contract while I sort there IT department out. After this I will begin working as a contractor full time.

So my first problem/issue is if there is any complications with contracting and being in "full time" employment. I don't really want my current company finding out what i'm up to if it can be helped (for obvious reasons).

My second concern is IR35 which sounds like a nightmare. Am I right in thinking if I use a umbrella company I can pretty much avoid any IR35 issues (alot of them seem to claim this).

Finally, can anyone recommend a good trusted umbrella company I can go with.

Thanks everyone!

[LisaContractorUmbrella]

Hi oafc0000,

If you take a secondary job whilst you are working full time the earnings from your second job will be taxed at basic rate (22% of everything you earn) as your tax free allowance (as dictated by your tax code) can only be applied to one employment.

IR35 dictates the way that you are paid - you can only receive dividends if you are outside IR35 and have your own limited company - inside IR35 you must receive payment via PAYE. If you are paid through a third party it must also be via PAYE which means that your IR35 status is irrelevent.

HTH

[malvolio]

Clearly didn't like the original answers, so trying again is it?.

Ermm, well done


Actually this is a litttle weird - there's a post further down from the same person that's been answered, and yet his post count here is set to 1. Mods having a little confusion in the engine room perhaps?

[dx4100]

Clearly didn't like the original answers, so trying again is it?.

Ermm, well done


Actually this is a litttle weird - there's a post further down from the same person that's been answered, and yet his post count here is set to 1. Mods having a little confusion in the engine room perhaps?

When I posted my first post it didnt appear straight away and I thought there had been a error. Didnt realise until my second attempt that mods had to approve each post. Sorry for any confusion!