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View Full Version : Going Ltd now I have two more contracts?



Henrythe8th
29th May 2012, 14:00
My position is that I am currently working a contract position at a single work place. The contract falls within IR35, therefore I am using an umbrella company in order to invoice them for the work and get paid. My current contract has always been contract based, I've been there for 9 months and I have never worked as a permanent member of staff at this company.

I am now about to pick up two other contracts for other work and am thinking about creating a Ltd company in order to cover all three contracts. Does this still leave me open to investigation by the HMRC for breaching IR35 rules, or does the fact that my company covers 3 different contracts, 2 of which are not within IR35 rules reduce the risk of investigation?

Obviously I am looking to make good returns on my gross pay, but not at the expense of getting into a large amount of trouble. I will be looking to hire an accountant to look after my books, but after meeting with one last week, it's become quite obvious that there are some not so good accountants out there who would rather just break rules than work around some of them if that makes sense. I would also be looking to get myself PCG cover.

(please go easy on the acronyms, I'll be the first to admit I am a newbie to this way of working but I'm desperately trying to learn fast!)

Thank you very much

northernladuk
29th May 2012, 20:57
HAving mulitple contracts is a very good way to prove you are a business, permies cannot hold multiple positions in the same company (generally) so you are in good position. Having said that each contract is normally taken on it's own merits so would be interested to know why you think the one you are in now puts you inside. How can you be inside if your time is spread between 3 pieces of work.

I do think even if one of them is inside the fact you have 3 should work very well in your favour. Just do your best to make sure each is as far out of IR35 just to be sure. If you can chose when you do work on which contract you might find the one you are on will turn outside based on that as well.

SimonMac
30th May 2012, 09:03
To clarify are the two additional contracts with the same client as the first?

Henrythe8th
30th May 2012, 14:26
Sorry I should clarify that the other two contracts are with two seperate companies

northernladuk
30th May 2012, 15:15
Sorry I should clarify that the other two contracts are with two seperate companies

Even better then. That is what business's do.