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  1. #1
    eek
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    Default Things to do in case you end up in an inside IR35 contract

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    Last edited by eek; 26th March 2017 at 06:27.
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    Contractor Among Contractors


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    Are you sure you can't apply salary payments made at any time in the year to a contract at any other time during the year?

    I've never been inside except for a very small contract which all went to pension contributions, so I've never looked into this extensively.

    I'd assume if you paid salary after an inside contract you could apply it to that contract, so why couldn't you if it was before the contract?

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    I think we could do with an accountant confirming it - Michael, Alan, etc?
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    Quote Originally Posted by eek View Post
    Following a comment from http://forums.contractoruk.com/publi...ml#post2389176 I've just realised something.

    Usually I pay myself a small salary every month but that means I'm using my income tax allowance up which would be a problem if you start an inside IR35 contract later in the year.

    Hence its probably no longer sensible to pay yourself any monthly income via PAYE but to leave it until March the following year (so March 2018) and pay it as one lump sum once you know that you aren't caught that year...
    Doesn't that affect your NI liability?

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    eek
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    Quote Originally Posted by teapot418 View Post
    Doesn't that affect your NI liability?
    Don't believe so as Director's NI is treated differently....

    Quote Originally Posted by WordIsBond View Post
    Are you sure you can't apply salary payments made at any time in the year to a contract at any other time during the year?

    I've never been inside except for a very small contract which all went to pension contributions, so I've never looked into this extensively.

    I'd assume if you paid salary after an inside contract you could apply it to that contract, so why couldn't you if it was before the contract?
    Remember in this new world, the NI and tax is paid on your behalf by the agent. I cannot see how you would be able to successfully claim that that wage slip in April is the same as the one the agent paid in December...
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    Quote Originally Posted by eek View Post
    Remember in this new world, the NI and tax is paid on your behalf by the agent. I cannot see how you would be able to successfully claim that that wage slip in April is the same as the one the agent paid in December...
    You're right.

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    Quote Originally Posted by eek View Post
    Don't believe so as Director's NI is treated differently....
    Just googled it, I never knew that!

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    Quote Originally Posted by eek View Post
    Remember in this new world, the NI and tax is paid on your behalf by the agent. I cannot see how you would be able to successfully claim that that wage slip in April is the same as the one the agent paid in December...
    So your advice is only for those in public sector and inside? Would it still be worth paying a monthly salary if you are inside IR35 outside public sector?
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    Quote Originally Posted by RonBW View Post
    So your advice is only for those in public sector and inside? Would it still be worth paying a monthly salary if you are inside IR35 outside public sector?
    For a contract outside the public sector all that matters is income paid as salary or pension is equal or greater to the contract that was inside.

    The public sector changes change that as its withholding tax regime is very different and probably works against the contract rather than the year as a whole...
    Last edited by eek; 16th March 2017 at 15:05.
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    Quote Originally Posted by teapot418 View Post
    Just googled it, I never knew that!
    same here and accountant has never discussed it with me either, but I suppose it actually only matters if you are not paying regularly?
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