Contracting and IR35 through a non PSC Limited Company Contracting and IR35 through a non PSC Limited Company
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  1. #1

    Nervous Newbie


    Join Date
    Apr 2017
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    Default Contracting and IR35 through a non PSC Limited Company

    I worked through my own PSC for 10 years but took a break for 4 years to run a 'proper' consultancy business though the Limited Company - it now has other turnover, employees, an office etc. I've now been offered a contract (whcih is too good to turn down) which the agency has deemed to be in IR35.

    Some of the revenue that I'll be getting from the contract, will be used to reinvest back into the company - pay a few bills, and also pay for someone to backfill my role in the company.

    Three questions - 1) Will the effect the IR35 status of the contract?, and 2) How will this effect what I pay in terms of deemed PAYE, corporation tax, 3) As the company has previous years loss to be offset against next years corporation tax, will this effect the IR35 payments etc?

    Thanks

  2. #2

    Faqqed Off

    TheFaQQer's Avatar
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    Oct 2006
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    Since the contract is inside IR35 and in the public sector then the invoices will be paid net of National Insurance and PAYE based on your tax code.

    Having more employees, a real business, anything else is immaterial if you are inside and in the public sector because the law is that the invoices must be paid net and the taxes paid by the fee payer to HRMC.
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  3. #3

    Should post faster


    Join Date
    Feb 2017
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    I agree with The Faqqer.

    The fact that this contract is inside IR35 and in the public sector essentially means that the income from this contract will be taxed as though you were and employee.

    You could also consider running this separate income through an Umbrella solution to save muddying the waters.

    We have a solution which allows clients to run a limited company and use our Umbrella function in tandem.

  4. #4

    More time posting than coding


    Join Date
    Jan 2015
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    332

    Default

    which just points out the complete stupidity as the OP could presumably send one/many of his employees to complete the work

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