Same client, current contract - ltd company, new contract - ok to use umbrealla?

[AMPM]

Client is offering a renewal but I wish to close down my limited company and get money out in form of capital distribution. I would like to work using umbrealla company (all tax and NIs paid, no dodgy stuff) and sign a new contract with the same client.

Is it ok to do so?

(I've not paid myself any dividend during this tax year and won't do that in future either.)

[AMPM]

anyone?

anyone?

[TykeMerc]

Putting your company closure issues aside as that's between you, your accountant and the Tax Man, there's no real reason that you can't change your contracting route in this manner so long as the client and agent are made aware in clear and sensible terms.

[Bluebird]

Putting your company closure issues aside as that's between you, your accountant and the Tax Man, there's no real reason that you can't change your contracting route in this manner so long as the client and agent are made aware in clear and sensible terms.

Probably only actualluy needs to be the agent.

You swap contract between Agency - YourCo for Agency - YourUmb.

[AMPM]

Probably only actualluy needs to be the agent.

You swap contract between Agency - YourCo for Agency - YourUmb.

Thanks. But doesn't that mean that it'll be easy ir35 target for bigbro as I'm being paid full PAYE salary during the contract being an employee of umbrealla company for the same work and working conditions that I had when working as a director/employee of my own ltd company?

[NotAllThere]

I assume you are worried about IR35 hitting your ltdco? Because, of course, once you've handed control of your finances, dunning procedures etc. to a third party, you won't need to worry about IR35.

Anyway, the fact that you were ltd before is irrelevent. You get hit by IR35 if a notional contract established between YOU and the CLIENT would be one of employment. If you had an non-IR35 contract, what you do after won't affect that.