Mixing contracts (Inside & outside IR35 in the same time) Mixing contracts (Inside & outside IR35 in the same time)
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  1. #1

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    Default Mixing contracts (Inside & outside IR35 in the same time)

    Hello

    There is a prospect i am picking up another contract which is inside IR35.

    I am currently working somewhere else outside IR35.

    How does this work in terms of taxes and self assesments?

    Those who have done it already, can you provide some insight please?

    thanks

  2. #2

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    Lance's Avatar
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    yes you can.
    Outside run as normal.
    Inside you can run through the company or an umbrella. Your accountant will be able to advise on how with your LTD.
    But you'd probably be as good to do it through an umbrella who'll let you pay huge amounts into a personal pension.
    See You Next Tuesday

  3. #3

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    Inform your accoutant even if you go through a brolly for the inside portion. He is likely to advise you stop paying yourself through the LTD and other tax saving stuff.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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    Quote Originally Posted by northernladuk View Post
    Inform your accoutant even if you go through a brolly for the inside portion. He is likely to advise you stop paying yourself through the LTD and other tax saving stuff.
    Good call actually!

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    Quote Originally Posted by Lance View Post
    yes you can.
    Outside run as normal.
    Inside you can run through the company or an umbrella. Your accountant will be able to advise on how with your LTD.
    But you'd probably be as good to do it through an umbrella who'll let you pay huge amounts into a personal pension.
    Cool..

    If it is inside, i dont understand the reason why i have to go through an umbrella as my accounting software has actually got IR35 provision so it calculates everything properly.

  6. #6

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    Quote Originally Posted by Michail View Post
    Cool..

    If it is inside, i dont understand the reason why i have to go through an umbrella as my accounting software has actually got IR35 provision so it calculates everything properly.
    that's up to you. You can run inside work through a LTD. As long as you can get paid that way. But as the tax may already have been deducted it's an overhead. If it's not deducted at source then your LTD may be cheaper than an umbrella.
    Check with your accountant though around the pension payments.
    You also need to know what happens with the PAYE deductions. Who's doing them? The agency, an umbrella, or your LTD.
    See You Next Tuesday

  7. #7

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    Have a play with this calculator in case you've also paid yourself a dividend in this tax year:
    Dividend Tax Calculator - 2019/20 - IT Contracting

  8. #8

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    Quote Originally Posted by Lance View Post
    that's up to you. You can run inside work through a LTD. As long as you can get paid that way. But as the tax may already have been deducted it's an overhead. If it's not deducted at source then your LTD may be cheaper than an umbrella.
    Check with your accountant though around the pension payments.
    You also need to know what happens with the PAYE deductions. Who's doing them? The agency, an umbrella, or your LTD.
    It won't and can't be your limited Company doing PAYE deductions for a Public Sector IR35 contract - your limited company can do those deductions until March for Private Sector IR35 contracts - I suspect however that the Agency won't want you to do that.
    merely at clientco for the entertainment

  9. #9

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    Quote Originally Posted by eek View Post
    It won't and can't be your limited Company doing PAYE deductions for a Public Sector IR35 contract - your limited company can do those deductions until March for Private Sector IR35 contracts - I suspect however that the Agency won't want you to do that.
    Indeed. If private sector it can be run by LTD right now, but as you say, the agency may well not like it. Hence why I said the OP needs to know who's doing the deductions.
    See You Next Tuesday

  10. #10

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    Quote Originally Posted by Lance View Post
    Indeed. If private sector it can be run by LTD right now, but as you say, the agency may well not like it. Hence why I said the OP needs to know who's doing the deductions.
    Still no idea... Will probably find out soon... But i have a hunch that they wont like it as they are an Indian recruited, like Avance etc, that want you locked into their umbrella system so they can pay you late and suckle as much they can out from you

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