Limited Co to Umbrella

[Padd]

Hi all

I’m looking for a bit of guidance.

I want to move from Ltd Co to Umbrella. I am in the Private Sector and my contracts are through Hays to there client. All my contracts have been IR35 checked and each one is outside IR35 in the opinion.

The reason I want to move is, that I’m fed up with the admin and hassle of Ltd and for personal reasons it would be easier to go through an Umbrella co.

I have a new contract on offer, with the same client so effectively my last contract was with the same Hays client as my new one. Only difference was last was through ltd co, new one through Umbrella.

Would this lead to an increased risk of investigation because I am going from Ltd Co to Umbrella ? I am also shutting my LTd co down aswell.

Any help would be gratefully received

Thanks

Paddy

[cojak]

It shouldn't do.

Just go with a reputable company and you should be fine.

[northernladuk]

What Cojak says. You have the evidence if they ever think (wrongly) the move to a brolly is anything to do with IR35. I think the general advice when closing a LTD is to keep any IR35 insurance going for another year in case they decide to do a random investigation when they get notice you are closing though.

Speak to Lucy at Contractor Umbrella. I went from my LTD to them when I landed an inside gig. I was only using them for the one contract rather than long term but the on boarding was painless and service good.
Not sure of your financial situation but they have a decent pension option allowing you to put whatever you want in so if you don't need all the money as PAYE you can be more tax efficient. Lucy will go through the options with you.

CU are also linked to Dolan Accountancy so can get advice about what to do you with your limited in the meantime. Shutting down might not be the best option straight away so between the two of them they'll give you the best option. It will also get Dolan off his arse and doing some work.

[Hobosapien]

I'd be wary about how it may be reported to HMRC in terms of past/future PAYE if you are using the same agency/client/contract.

Agencies report to HMRC some data (not entirely sure what off top of my head) so if they list you on previous and future reports and HMRC see that in effect you are now operating as if inside IR35 (you will be on PAYE via umbrella so from HMRC's viewpoint paying same as if you are inside IR35) and if everything else is the same (in their eyes) then that may be a trigger for an investigation.

I went from Ltd to umbrella for same client (with a gap between so not Friday to Monday ), previously outside (contract review confirmation) but now inside IR35 (client determination, public sector) and had the option of changing the agency and therefore the contract too, which I took. I've also made sure my working practices now are different to before so easier for me to show/prove how the old and new contract working practices differ should I be investigated.

As you intend staying outside IR35 then at least you can still get the contract reviewed and backed up with insurance for some peace of mind, so you're in a better position than me.

[simondolan]

Someone mention me....?

What Cojak says. You have the evidence if they ever think (wrongly) the move to a brolly is anything to do with IR35. I think the general advice when closing a LTD is to keep any IR35 insurance going for another year in case they decide to do a random investigation when they get notice you are closing though.

Speak to Lucy at Contractor Umbrella. I went from my LTD to them when I landed an inside gig. I was only using them for the one contract rather than long term but the on boarding was painless and service good.
Not sure of your financial situation but they have a decent pension option allowing you to put whatever you want in so if you don't need all the money as PAYE you can be more tax efficient. Lucy will go through the options with you.

CU are also linked to Dolan Accountancy so can get advice about what to do you with your limited in the meantime. Shutting down might not be the best option straight away so between the two of them they'll give you the best option. It will also get Dolan off his arse and doing some work.