Inside IR35 - keeping LTD Inside IR35 - keeping LTD
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  1. #1

    Default Inside IR35 - keeping LTD

    I've been talking to a pal who reckons he's going to be able to use HMRCs deemed payment calcs to continue to run his Ltd post April taking on inside IR35 work and reckons he'll still be getting paid gross via invoices and will do the inside calcs using HMRCs deemed employment rules himself.

    What he describes appears theoretically possible, but I haven't heard of any organisations that will pay gross on invoice for a gig they have determined as inside - has anyone else?

    He also reckons he can still claim travel expenses even on an inside IR35 gig - which I am 99% sure isn't right.

  2. #2

    Fingers like lightning

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    Quote Originally Posted by Peoplesoft bloke View Post
    He also reckons he can still claim travel expenses even on an inside IR35 gig - which I am 99% sure isn't right.

    It is 100% wrong in the brave new world post-April 2020.
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  3. #3

    bored now

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    Quote Originally Posted by Peoplesoft bloke View Post
    I've been talking to a pal who reckons he's going to be able to use HMRCs deemed payment calcs to continue to run his Ltd post April taking on inside IR35 work and reckons he'll still be getting paid gross via invoices and will do the inside calcs using HMRCs deemed employment rules himself.

    What he describes appears theoretically possible, but I haven't heard of any organisations that will pay gross on invoice for a gig they have determined as inside - has anyone else?
    Nope, if a client / agency is paying his company (and I'm surprised there are companies willing to do it but Samsung seemed to be one) the amount he will receive will be less various pieces of withheld National insurance. The company will not be being paid gross.
    merely at clientco for the entertainment

  4. #4

    Some things in Moderation

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    Quote Originally Posted by Peoplesoft bloke View Post
    I've been talking to a pal who reckons he's going to be able to use HMRCs deemed payment calcs to continue to run his Ltd post April taking on inside IR35 work and reckons he'll still be getting paid gross via invoices and will do the inside calcs using HMRCs deemed employment rules himself.

    What he describes appears theoretically possible, but I haven't heard of any organisations that will pay gross on invoice for a gig they have determined as inside - has anyone else?

    He also reckons he can still claim travel expenses even on an inside IR35 gig - which I am 99% sure isn't right.
    Tell him good luck with that...
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

  5. #5

    Contractor Among Contractors

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    Quote Originally Posted by Peoplesoft bloke View Post
    I've been talking to a pal who reckons he's going to be able to use HMRCs deemed payment calcs to continue to run his Ltd post April taking on inside IR35 work and reckons he'll still be getting paid gross via invoices and will do the inside calcs using HMRCs deemed employment rules himself.

    What he describes appears theoretically possible, but I haven't heard of any organisations that will pay gross on invoice for a gig they have determined as inside - has anyone else?

    He also reckons he can still claim travel expenses even on an inside IR35 gig - which I am 99% sure isn't right.
    Apologies if your friend is bi-polar or talks with ghosts, remove all sharp objects and tell him

    It’s a No


    Sent from my iPhone using Contractor UK Forum

  6. #6

    Some things in Moderation

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    Quote Originally Posted by GhostofTarbera View Post
    Apologies if your friend is bi-polar or talks with ghosts, remove all sharp objects and tell him

    It’s a No


    Sent from my iPhone using Contractor UK Forum
    This is beginning to steer in the wrong direction now...
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

  7. #7

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    Quote Originally Posted by Peoplesoft bloke View Post
    I've been talking to a pal who reckons he's going to be able to use HMRCs deemed payment calcs to continue to run his Ltd post April taking on inside IR35 work and reckons he'll still be getting paid gross via invoices and will do the inside calcs using HMRCs deemed employment rules himself.

    What he describes appears theoretically possible, but I haven't heard of any organisations that will pay gross on invoice for a gig they have determined as inside - has anyone else?

    He also reckons he can still claim travel expenses even on an inside IR35 gig - which I am 99% sure isn't right.

    But what if he paid for a 12 month train season ticket and 12 months lease on a flat whilst he was still contracting and then found himself forced to go on the payroll? The Ltd has already incurred those expenses but due to unforseen circumstances the game has changed. In essence aren't these travel/accommodation expenses, now enjoyed by the company's director now on somebody else's payroll, bought and paid for?

  8. #8

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    Quote Originally Posted by oliverson View Post
    But what if he paid for a 12 month train season ticket and 12 months lease on a flat whilst he was still contracting and then found himself forced to go on the payroll? The Ltd has already incurred those expenses but due to unforseen circumstances the game has changed. In essence aren't these travel/accommodation expenses, now enjoyed by the company's director now on somebody else's payroll, bought and paid for?
    Are you talking about monthly payments for 12 months or lump sum upfront? Personally I would never get a ticket or lease for 12 months. We are contractors, a temporary resource that can be disposed of at zero notice. Always keep that in the back of your mind. I did have a long lease once and got burned badly. Project was binned and all contractors terminated. I was left with a huge bill and legal problems with the Council. Never again. Every recurring expense is now billed monthly.

  9. #9

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    Quote Originally Posted by oliverson View Post
    But what if he paid for a 12 month train season ticket and 12 months lease on a flat whilst he was still contracting and then found himself forced to go on the payroll? The Ltd has already incurred those expenses but due to unforseen circumstances the game has changed. In essence aren't these travel/accommodation expenses, now enjoyed by the company's director now on somebody else's payroll, bought and paid for?
    If the accountant has done things correctly, the amount of the train ticket relating to the period after the set of accounts being prepared will be regarded as a prepayment so tax relief would not have been obtained.

  10. #10

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    OK I have come across another muppet who thinks they will get paid net of the deemed employee taxes but carry on running his Ltd and even pay corporation tax.

    Just in case it is me who's the muppet - I'm not missing something here am I?

    I mean if all the income to yourco is from deemed employment there's no profit is there? That suggests zero corp tax and zero point in keeping the ltd going.

    Or am I missing something?

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