Hi folks,
I just finished my first year as a contractor, and I'm a little confused about how my self assessment should be completed. I operate as a single person in a limited company. I got an SDS from my client in March concluding that I am outside IR35, which I believe means I am considered self-employed in the eyes of HMRC. My accountant believes I should be taking out the minimum amount of PAYE from the company (12.5k?) annually, and the rest out as dividends. She also believes that I should be completing a self assessment form that classes me as an employee rather than self-employed, but I don't believe this is correct as my SDS classes me as self-employed. Wouldn't completing a form that classes me as an employee be contradicting my outside status?
I have tried speaking to HMRC about this, but their staff are completely clueless when it comes to IR35, which is baffling. I'd really appreciate it if someone could clear this up for me.
Thanks
I just finished my first year as a contractor, and I'm a little confused about how my self assessment should be completed. I operate as a single person in a limited company. I got an SDS from my client in March concluding that I am outside IR35, which I believe means I am considered self-employed in the eyes of HMRC. My accountant believes I should be taking out the minimum amount of PAYE from the company (12.5k?) annually, and the rest out as dividends. She also believes that I should be completing a self assessment form that classes me as an employee rather than self-employed, but I don't believe this is correct as my SDS classes me as self-employed. Wouldn't completing a form that classes me as an employee be contradicting my outside status?
I have tried speaking to HMRC about this, but their staff are completely clueless when it comes to IR35, which is baffling. I'd really appreciate it if someone could clear this up for me.
Thanks
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