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IR35: Planning for April 2021 – should I stay or should I go?

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    Originally posted by Blert596 View Post
    Thanks. The problem I have I suppose is that I have to work up until the end of December so I need to keep it open until then. With the time to close down that will , I believe, take it past April (4-6 months?).

    The user mvlonline will likely respond here to you, but my understanding is you will receive approximately 75% of the company cash - if in a compliant quick bank, such as HSBC current account - in around 4 to 6 weeks. This would mean ER could apply at this point; remaining cash is reserved for surprise HMRC debts and third party debt. You're unlikely to have those if you've sorted your affairs appropriately before starting the MVL process, but remaining cash may also need that 'ER' stamp at the point of distribution too.

    ER is selected on your self assessment tax return too - I believe, I've never done it, but this is my understanding. The date of the distribution is what matters, although intriguingly if you've received 75% of the monies BUT the rules change before you receive the final proportion of the remaining 25% then can you claim ER on the former but not the latter? Good question.

    MVL folk, where hark ye?

    Comment


      I’m contracting via my Ltd -> Agency -> Consultancy -> Client

      Yes, it’s a client that’s been mentioned as using this so they don’t do the IR35 determination.

      There’s quite a few contractors here via the Consultancy, some of whom I’ve spoken to, and they’re probably don’t know all about IR35.

      All the contractors have been asked to do an IR35 determination by the consultancy via Qdos.

      I had the contract assessed by Qdos (as I always do, I’ve got my insurances with them) before I signed it, and had it changed as per the minor points raised by Qdos, it’s outside.

      What happens if my determination ends up outside, but one or more of the other contractor’s determinations ends up inside?

      Do we all end up inside?

      Comment


        No. You've just stated some will be outside and some not so why should they all be the same. It's on the role and theirs might be different.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          Originally posted by rogerfederer View Post
          The user mvlonline will likely respond here to you, but my understanding is you will receive approximately 75% of the company cash - if in a compliant quick bank, such as HSBC current account - in around 4 to 6 weeks. This would mean ER could apply at this point; remaining cash is reserved for surprise HMRC debts and third party debt. You're unlikely to have those if you've sorted your affairs appropriately before starting the MVL process, but remaining cash may also need that 'ER' stamp at the point of distribution too.

          ER is selected on your self assessment tax return too - I believe, I've never done it, but this is my understanding. The date of the distribution is what matters, although intriguingly if you've received 75% of the monies BUT the rules change before you receive the final proportion of the remaining 25% then can you claim ER on the former but not the latter? Good question.

          MVL folk, where hark ye?

          The UK government budget has been postponed indefinitely, according to news yesterday.

          Subject to MVLonline confirming with you I suggest you use a calculator and work out whether you're significantly better off financially by quitting work and MVL'ing straight away or continuing work until December and risking being unable to MVL.

          If you've got 50k and no liabilities in your business account then there's nothing to discuss, just continue as you are. If you have 500k then why are you still working?

          Comment


            Originally posted by rogerfederer View Post
            The UK government budget has been postponed indefinitely, according to news yesterday.
            I just read this on Reuters.
            Anyone know what the implications are for Off-payroll regs in the private sector? I.e. can it become law until officially announced in the budget?

            Comment


              Originally posted by CheeseSlice View Post
              I just read this on Reuters.
              Anyone know what the implications are for Off-payroll regs in the private sector? I.e. can it become law until officially announced in the budget?
              OK googled it. Budget is precursor to Finance bill. That bill has to get royal ascent to become law. One thing for sure is there will have to be one no matter what Brexit throws in the way. If there isn't a finance bill the government can't collect any income tax next year as this has to be renewed annually.

              Comment


                Originally posted by rogerfederer View Post
                I think this has been sound advice in the past but is unsound advice now.

                MVL: Entrepreneur's Relief (ER) is at the point of monetary distribution, this is at least a month if not two months for 75% of money remaining in the Limited Company.

                If the forthcoming budget changes ER so as to affect such MVL with ER then a contractor with Limited Co will have started an MVL process but with no benefit realised; they will be stuck in limbo whilst they've commenced a process that they cannot stop yet will not get ER.

                My advice is to wait until after the budget in early November before deciding whether to MVL. If you start now it's of no consequence, as you can't get the distributions quickly enough to avoid any new ER restrictions. Sorry.
                That advice is once you've decided to go the MVL route. You can't begin the process until you stop trading, so move into an umbrella/permie job first and then go MVL.
                "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
                - Voltaire/Benjamin Franklin/Anne Frank...

                Comment


                  I'm currently working for a "small" non-profit company through a "small" agency - I'm not sure the Agency understand the "determination" piece let alone the end-client ( I'm one of only two contractors ).

                  How will the end client know they need to make a determination on my role?

                  If i keep my head down and don't mention it - is it me at risk or the end client?

                  I have thought about asking the question with the agency, but if I'm better off keeping quiet I will.
                  Cenedl heb iaith, cenedl heb galon

                  Comment


                    If it is small enough is it no exempt?
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

                    Comment


                      Originally posted by northernladuk View Post
                      If it is small enough is it no exempt?
                      Thanks NLUK - I did think off that after I'd posted

                      I've just checked the exemption and found the following:

                      • Annual turnover is no more than £10.2 million
                      • Balance sheet total is no more than £5.1 million
                      • No more than 50 employees.

                      The client I'm with fails on all three - however they are non-profit but I can't see anywhere that it makes a difference...
                      Last edited by Bluebird; 29 October 2019, 10:47.
                      Cenedl heb iaith, cenedl heb galon

                      Comment

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