IT Contracting - Ltd company or Umbrella

[MrMarkyMark]

Has you contract been reviewed for IR35 ?

What would be the point of that?

He's a classic IR35 fail, Friday to Monday, perm to contractor, same gig, same company etc.
Exactly what IR35 was designed for. It wouldn't matter what was written down, in the contract, in this instance.

[Jeremiah@RHJAccountants]

What would be the point of that?

He's a classic IR35 fail, Friday to Monday, perm to contractor, same gig, same company etc.
Exactly what IR35 was designed for. It wouldn't matter what was written down, in the contract, in this instance.

A professional opinion rather than strangers on a internet forum is always advised, he most likely is inside IR35 however speaking to his accountant about all aspects of contracting would make sense not just IR35.

[MrMarkyMark]

A professional opinion rather than strangers on a internet forum is always advised, he most likely is inside IR35 however speaking to his accountant about all aspects of contracting would make sense not just IR35.

Totally agree, however I was referring to your comment about having the contract reviewed.
I don't see the point, as the working arrangement, as he described, will trump any nonsense written in the contract.
If he wishes to waste his money, however, he should go right ahead

[LondonManc]

Comments on the OP:

Classic case of Friday-Monday IR35, don't waste money on an IR35 review but do understand what all the clauses in the contract mean. Also be wary; while there may be a notice clause, your "real" notice clause is minimal. I've known people walked off site for trivial reasons and myself had my contract terminated at a smaller client due to budgetary/project changes. There was simply "no work" for me; it's legal but not nice and is all part of the risk that we get paid more to take on.

Expenses - while you are contracting, in this gig you are contracting for a consultancy. This is different to a standard via-an-agency gig. You've added an ultimate client at the end. Make sure that your contract with the consultancy allows you to expense everything when working away - particularly travel, hotels, and an evening meal allowance. Straight charge back. Saves you messing around with the 5% rule and get a 100% rule in place

Go limited though; long term it allows you to be far more flexible.

[newbieITContractor2015]

LondonManc,
Thanks for the heads up, I'll stick to Ltd company.

Currently my arrangement allows me to expense for travel to customer site, so I pass those expenses on my client (i.e. the consultancy) who will reimburse me.

[LondonManc]

LondonManc,
Thanks for the heads up, I'll stick to Ltd company.

Currently my arrangement allows me to expense for travel to customer site, so I pass those expenses on my client (i.e. the consultancy) who will reimburse me.

If only all contracts were like that!

Outside IR35 simply means, from an expenses point of view, that you can take that money out of your own company from the top level, i.e. you don't have to pay tax on the money you take out of the company to pay your expenses. Perhaps the future of inside IR35 contracts is that we take a hit on the tax but get to invoice full (reasonable) travel and accommodation expenses to client, but that's a discussion for a separate thread.

Good luck with contracting.

[Crossroads]

The one reason I would say go ltd is that then you are in charge of the relationship with the agency. There was a post here recently, where a contractor was in dispute with a client over payment. As a brolly user, he doesn't personally have any debt. The debt is the brolly's. But since the brolly's exposure is only the admin fee, it's not worth their chasing.

This x1000. A few years ago I went brolly for a while for various reasons.

It turned out the agency were a bunch of shysters. Because I had no direct relationship it was very difficult to make them pay.

I got lucky, by spotting the issue quickly and outwitting them, putting pressure on spouses who did not realise the responsibility they held by being officers of said agency and turning up at home addresses at inconvenient times. Oh, and explaining to one director I would mention to his employer that he was running a sideline business in direct competition with them. None of it nice to do.

Anyway, I digress. IMHO if you go umbrella you add another rung to the ladder and give up control of the contractual relationship with your client. I'd rather pay an accountant and put a few hours of effort in myself even if there is no financial reward.

[northernladuk]

Ugghh. App quoting the wrong posts again. Ignore me.