Purposefully within IR35

[Zero Liability]

I think in your situation it may be worth just clarifying due to the number of years worked via an umbrella, but when I've asked Qdos consultants this question before, they say that operating via an umbrella is neither here nor there as far as they're concerned with regard to IR35, so largely it would seem to be a matter of being able to affirm their propositions for the TLC; they do not stipulate a contract review for their policies. The fee protection can be taken even if you believe you are inside, subject of course to not already being in the crosshairs of an investigation and some other caveats. So best get in touch with them before taking anything out.

[Forbes Young]

I need to form a limited company to take on some contracting work as the agency/client will not accept me as self-employed or PAYE and I don't wish to use an outside Umbrella/PSC.

Would the following assumption be correct;

If HMRC receive enough revenue, at least as much as they would from me being PAYE, then even if I fall within IR35; there is not any issue of non-compliance as revenue is at least equal.

When operating within IR35 with a ltd company, you can still claim 5% of turnover as an allowable cost as well as travel & accommodation to place of business (up to 2 years), insurance costs, some subs & have your company pay for your pension contributions. The balance then goes through the payroll. So generally still better off than operating through an Umbrella if you had a contract for longer than a few months. Also, the next contract you win may be outside of IR35, then you could take dividends and save on tax and NI.

[VectraMan]

When operating within IR35 with a ltd company, you can still claim 5% of turnover as an allowable cost as well as travel & accommodation to place of business (up to 2 years), insurance costs, some subs & have your company pay for your pension contributions. The balance then goes through the payroll. So generally still better off than operating through an Umbrella if you had a contract for longer than a few months. Also, the next contract you win may be outside of IR35, then you could take dividends and save on tax and NI.

You also gain by being on the VAT FRS, and if you're prepared to do your own accounts then probably your only cost will be the £14 annual return fee.

[desir]

Thanks for all the replies. I think I have it sussed now.