Double Question

[dannywooly77]

Hi All

First post on here so go easy! I have been IT contractor for 3 years now and trying to keep inline with the law lol, but have a couple of questions. I am setup in the normal way 50/50 with wife etc sal and divs monthly. Not currently claiming expenses as i fell into the 24 months trap when my renewal pushed me over 2 years never mind. Now for the questions:

1) I have a colleague who is operating under an umbrella contracting, am i able to bring them on as a sub contractor of my company?, what are the risks or legalities associated with this?

2) I have a requirement to develop a dash board and require a 65" 4K screen to fit this dashboard on, I know i can also reclaim the VAT on the over £2k expense but concerned about putting it through the books and im sure HMRC will immediately think im buying a tv for the house!
Any help with ensuring that this is legitimate?

thanks and regards

Danny

[WTFH]

Welcome, Danny


I will leave others to answer your first question. With regard to your second, do you actually require a 65" 4k screen to develop the dashboard, or is the client's requirement that the dashboard can be displayed on such a device?

[Scruff]

You can get much smaller 4K displays with the same resolution. You would have to sit 260" away from a 65" to be able to see it without hurting your eyes!

[dannywooly77]

I guess i could use a smaller 4k display but wanted to demo it, then i could use the screen for trade shows afterwards

[Fred Bloggs]

I guess i could use a smaller 4k display but wanted to demo it, then i could use the screen for trade shows afterwards

You can expense anything you want as it is your co. But be prepared to explain how it is wholly and exclusively for the purpose of trade to HMRC if they ask.

[northernladuk]

Don't bother bringing people in under your LTD. It just isnt worth the hassle. At best you skim a bit off the top at worst you both get binned if he screws up or if the client changes his mind. It seems very tempting but the risk tends to far outweigh the benefits.

A 2k piece of kit for developing one dash board... Damn right HMRC will immediately think you are taking the piss. If there is the alight chance that you aren't you are still going to have to defend it. How lucky do you feel?

I'd argue setting up 50/50 with the wife isn't the 'normal' way but am sure it's debatable. As soon as it does become the normal way HMRC are going to start taking a greater interest as well.

[LondonManc]

Don't bother bringing people in under your LTD. It just isnt worth the hassle. At best you skim a bit off the top at worst you both get binned if he screws up or if the client changes his mind. It seems very tempting but the risk tends to far outweigh the benefits.

A 2k piece of kit for developing one dash board... Damn right HMRC will immediately think you are taking the piss. If there is the alight chance that you aren't you are still going to have to defend it. How lucky do you feel?

This in general. Don't act as an umbrella, but if you're acting as a small consultancy, that's fine. That is, if you're just getting a small admin fee of the person, don't bother (unless your accountant suggests otherwise). If you're acting as a small consultancy and can charge, say, £700/day for a guy who's invoicing £500/day to you, then it's worth it. Make sure your contract with them is a business to business contract with relevant payment terms (I expect to be paid month in arrears when on B2B - better rate but higher risk); you would need a contract with client co in this situation but in the example you're talking about, you'd need one via an agency, leaving you with little or no margin.

[dannywooly77]

Thanks for the info guys, so looks like i'd be best to use the TV in the lounge for dev work testing and skip buying another.

And yes it would be a simple pass through to a client, the person in question has to work through an agent and is currently getting milked! I just offered up to look into having them work through my business. But wasn't sure it was a good idea or not.

[LondonManc]

Thanks for the info guys, so looks like i'd be best to use the TV in the lounge for dev work testing and skip buying another.

And yes it would be a simple pass through to a client, the person in question has to work through an agent and is currently getting milked! I just offered up to look into having them work through my business. But wasn't sure it was a good idea or not.

They'll still have to go through an agent and will still be on the same day rate, brolly or ltd, so they're better off setting up their own ltd.

Unless you're saying that the brolly is creaming a lot off?

[northernladuk]

Thanks for the info guys, so looks like i'd be best to use the TV in the lounge for dev work testing and skip buying another.

And yes it would be a simple pass through to a client, the person in question has to work through an agent and is currently getting milked! I just offered up to look into having them work through my business. But wasn't sure it was a good idea or not.

To be honest that is his problem. If he's not got it about him to change that I wouldn't be having him anywhere near my business on top of everything else been said.