Hi,
I've accepted a new role inside IR35 and have two questions.
1. There will be an overlap of two weeks of my old role outside IR35 and my new role inside IR35 where I will be invoicing for some days with my old client and some days with my new client. Are there any concerns there? Will having an inside IR35 role at the same time as an outside IR35 role have any chance bringing my outside role, inside. I wouldn't think it would as they are seperate entities but wanted to check.
For those contractors who work inside IR35 and get paid via their limited company....
2. When calculating a salary for yourself are you allowed to use market rates. I.e. the market rate for a developer in the area I am in is around 35-55k a year. The contract could be worth 100k a year to my limited. Is it fair and acceptable in HMRCs view to give myself a salary of 35k a year, or would they expect me to pay myself the entire contract value minus allowances for company running and employer NIC?
With an umbrella you don't have the choice so the employer NIC is paid on the entire contract value minus umbrella costs. But my accountant advises via limited I could pay myself any salary as long as its fair with the market rate. And the market rate for a developer in my area isn't 100k but is around 40k, which means the employer NIC would be a lot less.
Can anyone who is inside IR35 advise on what is technically accurate.
Thanks.
I've accepted a new role inside IR35 and have two questions.
1. There will be an overlap of two weeks of my old role outside IR35 and my new role inside IR35 where I will be invoicing for some days with my old client and some days with my new client. Are there any concerns there? Will having an inside IR35 role at the same time as an outside IR35 role have any chance bringing my outside role, inside. I wouldn't think it would as they are seperate entities but wanted to check.
For those contractors who work inside IR35 and get paid via their limited company....
2. When calculating a salary for yourself are you allowed to use market rates. I.e. the market rate for a developer in the area I am in is around 35-55k a year. The contract could be worth 100k a year to my limited. Is it fair and acceptable in HMRCs view to give myself a salary of 35k a year, or would they expect me to pay myself the entire contract value minus allowances for company running and employer NIC?
With an umbrella you don't have the choice so the employer NIC is paid on the entire contract value minus umbrella costs. But my accountant advises via limited I could pay myself any salary as long as its fair with the market rate. And the market rate for a developer in my area isn't 100k but is around 40k, which means the employer NIC would be a lot less.
Can anyone who is inside IR35 advise on what is technically accurate.
Thanks.
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