working inside IR35 or Umbrella?

[Robbie]

I see lots of advise for woriking outside IR35 but if you are caught inside IR35 is it better to go throgh a brolly? Also if your next contract falls outside IR35 how do you change from one to the other?

Robbie

Admin note: After the IR35 review, an HMRC IR35 forum has been set up to identify 'high risk' IR35 cases

[TykeMerc]

I see lots of advise for woriking outside IR35 but if you are caught inside IR35 is it better to go throgh a brolly? Also if your next contract falls outside IR35 how do you change from one to the other?

Robbie

It's a fairly close run thing, but Ltd inside IR35 is arguably slightly more lucrative than Umbrella if you want the additional hassle. How much hassle is a matter of opinion.

Swapping isn't tricky, it takes minutes to set up a brand new Ltd, a week or two max to get a company bank account and however long to find an accountant you want to do business with.

[PhilAtBFCA]

Hi Robbie

Good advice from TykeMerc for sure. Mathametically you will always be better off in a Limited under IR35 if you are vat registered, as long as you will be using your company for long enough.

A limited co is not all about the money though, you really do need to want to run your own business.

For an exact caluclation see the spreadsheet here

Phil