IR35 rubbish....

[firehawk]

sorry just frustrated.

I'm new to the contracting market, well, exactly 1 year almost. All I have been doing is working (on not such a great pay but still either way) and have an accountant to do the taxes and what not. thats what im doing. In one contract, almost into the next...paying taxes on time, pretty much on the same day as I get my "bill" from the accountant.

Just been assessed for IR35 and there are like 3 stages the accountant does it in Green, Amber, Red.

and im in Amber....and should pay out for the "safety" costs. Still have the end of year tax to pay and no idea how much that is.

it just doesnt make sense, im pretty worried. ive not established any out of work arrangements or anything of the sort. always been following the contract and what not, surely I should be in green? But apperently not!

makes no sense. you follow the rules...yet you get caught (or almost caught).

[Fred Bloggs]

These days there are many thousands of folk just like you. Unfortunately that's the way it is these days IMO. Nobody knows for sure exactly how much tax they legally have to pay with 100% certainty.

[HYpno27]

What he said - welcome to the frustrating to be in business world of today

[Ardesco]

Get the contract professionally reviewed by somebody like Baur & Cottrell or QDOS. They will have a much greater understanding than your accountant. If it was Amber I would probably risk it, most cases will be amber nowadays due to Nu Liemore FUD to be honest.

[Sockpuppet]

Also look at how your accountant is operating. You could be close to being an MSC.

Just make sure you control the bank and the accountant doesn't get the cheque book!

[firehawk]

Thanks folks, its nice to hear (in a sense) that its not just me.

MSC - whats that?

I just follow what the accountant tells me interms of how much "take home pay" there is and how much of VAT/TAX I pay and how much should be left in the business account, and I follow just that, no questions asked.

I don't know what to do. They say to be safe take out insurance, but what does that actually do? Do I have to go to court already?! I don't have enough money as it is, been waiting 8 weeks for work and finally found some as the IT market has been shockingly terrible since February.

Been mugged all over, "yes we want you" then the typical "oh we dont have the funds" or they want you, you go in, great feedback then they terminate you for no reason the next day - and you dont get paid for it either.

stupid.

So yeh, i never slept - yet again and really is having a knock on effect on my health.

"Amber" means that whilst I am safe to declare I am outside IR35, there are still some factors to consider and HMRC can do a spot check on you at any time and you have to proove that you are outside IR35 - how?

[TheFaQQer]

Get the contract professionally reviewed by somebody like Baur & Cottrell or QDOS. They will have a much greater understanding than your accountant. If it was Amber I would probably risk it, most cases will be amber nowadays due to Nu Liemore FUD to be honest.

WHS - get a lawyer to review it, rather than an accountant.

I would risk it, join PCG+ for the insurance etc. and not worry too much about it.

[xoggoth]

Get insurance, make sure you keep enough by to cover any liability and offset some of the interest you might have to pay by saving in a decent account. Unless you have ben really taking the piss and get penalties, end result not that much worse than paying up.

[firehawk]

PCG+ ?? What's that and what does it do/cover?

in addition, what do I have to do with all this? What is the process?

[TheFaQQer]

PCG+ ?? What's that and what does it do/cover?

in addition, what do I have to do with all this? What is the process?

Linky.

Pays your money, takes your benefits.

Malvolio will be along at some stage to tell you it's a no brainer