umbrella or Ltd??

[SueEllen]

1. Is it true that her contract will become inside IR35 if she accepts a contract role from her ex-employer after being making redundancy?
ie. There is a Ir35 rule that you can't work as a contractor in the same company after you left the company for certain amount of months or years? If you do so, your contract will be automatically in inside IR35.

The issue here is your partner is going back to the same company that made her redundant. That means in the taxman's eyes either one or both parties are trying to dodge paying tax and NI contributions.

2. If I decide to take her as an employee in my ltd, is it worth keeping my ltd for her contract as I am going for permanent role and planning to close my company? By then, she can save money to set up a new ltd and I pay her salary in PAYE.
But my concern is that she is the fee earner as an employee in my Ltd but not me as a Director becuase I am having a permanent job in another company. Will I get any attentions from HMRC?

The best thing to do is to seek advice from your accountant. Setting up a new ltd is not expensive but the issue is whether she wants to remain a contractor.

[clwd]

In order not to get involved in any Family Business tax or IR35 issues, I assume my spouse's contract is inside IR35.
So, would it still be better for her to set up her new Ltd and pay herself salary in PAYE rather than using umbrella company? which one is much more efficient and get more net income?

[Gonzo]

So, would it still be better for her to set up her new Ltd and pay herself salary in PAYE rather than using umbrella company? which one is much more efficient and get more net income?

Yes, that is a tricky one.

If only someone would put a sticky thread at the top of the forum titled something like "Should I trade as a Limited Company, umbrella or composite"

hth

[tim123]

Yes, that is a tricky one.

If only someone would put a sticky thread at the top of the forum titled something like "Should I trade as a Limited Company, umbrella or composite"

hth