Contract with HMRC, inside IR35 - anyone know how it will work please?

[TonyF]

You can continue to work via your limited company on the contract inside IR35, the difference will be that you will receive income already taxed, your accountant if experienced with IR35 should help you understand how it all works.

If he wants to make pension contributions then that isn't going to be possible.

For public sector inside IR35 work I'd find a decent umbrella and just be their employee for a while - let them handle it all and keep it well away from the limited company - keep that for non-public sector or work that is outside IR35.

[TonyF]

Having researched briefly (more planned later today) on the other forum I should have started out on in the first place, however, I can't see that it seems likely I'll get any public sector hirers to contract with my limited company, and if they're paying me net I don't see any benefit anyway? It seems like umbrella company with the facility for pension contributions via salary sacrifice is the least bad option - or am I missing something?

You aren't

Something that irks me is I appear to be losing the 5% deduction in the IR35 deemed employment calculation doing things this way, but it's a bit of a rounding issue really and not that significant...

HRMC argue that the 5% isn't needed any more because they are removing the uncertainty of IR35 this way and so you don't need insurance or to have a contract check. This is, of course, untrue (the 5% is intended to cover all your expenses).

[psychocandy]

If he wants to make pension contributions then that isn't going to be possible.

For public sector inside IR35 work I'd find a decent umbrella and just be their employee for a while - let them handle it all and keep it well away from the limited company - keep that for non-public sector or work that is outside IR35.

Agree. By far easiest way for inside IR35 PS is umbrella.

[psychocandy]

Someone recently said only the dumb and desperate work inside IR35 ...
You'll probably be forced to work through an umbrella or if you don't you'll find yourself no better off and you'll have to wait longer to be paid. You will lose control of what you earn. You'll also be shocked at how little take home pay you'll be left with. Your probably better off being employed than working inside, basically it's a **** sandwich.

Complete bulltulip.

Agreed umbrella is probably the best option.

Wait longer? Bulltulip. Why? I've worked through this agency twice now. Once via ltd and once via umbrella. Pay both every week.

Less take home? Obviously, more tax and NI but depends on rate doesnt it? A lot of PS have hiked the rates by 35% to cover this. I did when I started. Went from an outside gig to an inside IR35 PS but with a 35% rate increase. Take home roughly the same.

Judge an inside gig on its merits and bottom line take home. Yes its a minor hassle setting up umbrella etc but you're IR35 safe aren't you? Expenses - yes you can't claim but does it matter if its local - see above statement about bottom line.

To say the an inside gig is only for the dumb and desperate just shows how naive you are to be honest.

[Glencky]

Thanks on the last few responses but they have basically confirmed my thinking - much appreciated, all (esp considering I posted in the wrong place to start with!)

By the way - I'm a she, rather than a he! Some of us PMs are, you know! ;-)