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Going contracting - Starting a Ltd company

Startups, marketing and more
moorfield
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Re: Going contracting - Starting a Ltd company

#104811

Postby moorfield » December 17th, 2017, 8:47 pm

Redmires wrote:Either way, it will work out for me as I will still earn considerably more than my last role even if inside IR35.


... while you are working. Don't forget you are no longer a permanent employee, assume billing voids may occur, and manage your cashflow accordingly.

StepOne
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Re: Going contracting - Starting a Ltd company

#104910

Postby StepOne » December 18th, 2017, 12:32 pm

I thought that the number of contracts was completely irrelevant. HMRC will assess each contract individually, and you could in theory be caught by IR 35 in some but not others. The key decision is about whether the hiring company will accept someone else in your place.

StepOne

UncleEbenezer
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Re: Going contracting - Starting a Ltd company

#104929

Postby UncleEbenezer » December 18th, 2017, 1:17 pm

moorfield wrote:... while you are working. Don't forget you are no longer a permanent employee, assume billing voids may occur, and manage your cashflow accordingly.

Same applies in a notionally permie job, some more than others. Especially if you're not in a "protected" group (i.e. if you're white, male, and able-bodied).

didds
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Re: Going contracting - Starting a Ltd company

#104947

Postby didds » December 18th, 2017, 2:46 pm

StepOne wrote:I thought that the number of contracts was completely irrelevant. HMRC will assess each contract individually, and you could in theory be caught by IR 35 in some but not others. The key decision is about whether the hiring company will accept someone else in your place.

StepOne



I haven't contracted since 2009 so it could be there has been new case law or similar since, but back then the right of substitution was a strong indicator of not being caught but as I understood it would NOT on its own mean the contract was not caught. Ditto lack of mutual obligation. Again, as I understood it having several clients in a short period of time eg a year, would not in itself mean all contacts were not IR35 caught... but the overall pattern may be an indicator. Best scenario - back then etc - AIUI was if you could several clients running concurrently that was a very very strong indicator. Though again, would not necessarily mean HMRC would not have deemed any one of those not caught.

I appreciate as said above possibly more recent case law or findings etc have altered this understanding. :)
didds

StepOne
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Re: Going contracting - Starting a Ltd company

#105032

Postby StepOne » December 18th, 2017, 9:26 pm

I just ran through the IR 35 status checker https://www.tax.service.gov.uk/check-em ... x/cluster/

There were more questions than last time I did it - questions about substitution, the kinds of duties involved and who decides where and when the work is done, but there are no questions like 'is this the only client of the worker'.

I answered them honestly about my current contract and it said I do not come under IR35. For the substitution question I said the situation had not arisen (which is true) and for the other questions I said that I can choose my own work location (which is true, although 95% of the time I am in the client office) and I choose my own work schedule (also true, although pretty much I am there Monday to Friday 9-5).

StepOne

melonfool
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Re: Going contracting - Starting a Ltd company

#105035

Postby melonfool » December 18th, 2017, 9:37 pm

StepOne wrote:I just ran through the IR 35 status checker https://www.tax.service.gov.uk/check-em ... x/cluster/

There were more questions than last time I did it - questions about substitution, the kinds of duties involved and who decides where and when the work is done, but there are no questions like 'is this the only client of the worker'.

I answered them honestly about my current contract and it said I do not come under IR35. For the substitution question I said the situation had not arisen (which is true) and for the other questions I said that I can choose my own work location (which is true, although 95% of the time I am in the client office) and I choose my own work schedule (also true, although pretty much I am there Monday to Friday 9-5).

StepOne


Yes. As said above - IR35 is a different matter to employment status. Having more than one client helps to avoid a risk that the assignment could be seen as employment.

I have a substitution clause but have never enacted it. Most clients would be fine if you just took a day off sick. My work can just wait a day, it's not critical, I'm not a heart surgeon!

Mel


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