Closed limited company - new role outside ir35

[Bowie]

Hi everyone

I was hoping for a bit of advice. I closed my company last July and worked inside ir35 via an umbrella on 600 per day

I have been offered a new role outside of ir35 on 650 per day.

Would i have to do this via umbrella having closed my limited company last year and would this negate the outside benefits and simply make it a decision if the extra 50 a day is worth it?

Many thanks, all opinions welcome

Bowie

[northernladuk]

Details my friend, details. How did you close your company? Did you MVL it with a good stack of cash in or did you withdraw it and just close the company? If it's the former you can't open another LTD for two years so you are stuck with a brolly. If you are stuck with a brolly then is £50 a day worth jumping? I doubt it.

[Paralytic]

What NLUK is true in the vernacular, but, strictly speaking, you *could*, if you so chose, open a new Ltd and face the tax penalty of any benefit you gained when you closed your old company.

ie. MVLing doesn't stop you opening a new company, but will potentially have financial implications (and not good ones).

[northernladuk]

What NLUK is true in the vernacular, but, strictly speaking, you *could*, if you so chose, open a new Ltd and face the tax penalty of any benefit you gained when you closed your old company.

ie. MVLing doesn't stop you opening a new company, but will likely have gross financial implications (and not good ones).

Very true but I don't tend to add illegal or poor options in to my advice. It's hard for me to get a post right when it's the legal way without any added complications

[ensignia]

IR35 was the best thing to happen in contracting for a long time. It really separated the wheat from the chaff IMO.

[northernladuk]

IR35 was the best thing to happen in contracting for a long time. It really separated the wheat from the chaff IMO.

Looking at some of the questions we've had this week I can't disagree with that. Maybe not the best thing, particularly in the way it's been implemented but I get the premise.

[Paralytic]

Very true but I don't tend to add illegal or poor options in to my advice. It's hard for me to get a post right when it's the legal way without any added complications

It don't think its illegal to MVL and then open another company - it just means HRMC have the right to claw back any tax benefits gained.

[Smartie]

IR35 was the best thing to happen in contracting for a long time. It really separated the wheat from the chaff IMO.

Kinda depends on individual circumstances doesn't it? Consider the following situation:

A role with long term prospects that's interesting
An excellent rate
The client is willing to pay the employer NI costs on top of that rate
You want to stack your pension with maximum annual contributions, perhaps topping up previous years, giving a 'take home' of around 68%
You have a nice sum to take out in MVL at a low tax rate before any possible changes to that tax area
You stash the proceeds in your 'warchest' against an offset mortgage, reducing your mortgage term/interest payments

If you do the sums and work out the risk/reward you may well find that inside is better than outside, at least for the couple of years before you can start another Ltd.
And you get to retire earlier.

[northernladuk]

Kinda depends on individual circumstances doesn't it? Consider the following situation:

A role with long term prospects that's interesting
An excellent rate
The client is willing to pay the employer NI costs on top of that rate
You want to stack your pension with maximum annual contributions, perhaps topping up previous years, giving a 'take home' of around 68%
You have a nice sum to take out in MVL at a low tax rate before any possible changes to that tax area
You stash the proceeds in your 'warchest' against an offset mortgage, reducing your mortgage term/interest payments

If you do the sums and work out the risk/reward you may well find that inside is better than outside, at least for the couple of years before you can start another Ltd.
And you get to retire earlier.

It does and you've considered those circumstances, the pro's and con's and come to an informed decision based on a good knowledge of what you do. Many of the posts we have are just disguised permatractors just ticking boxes without a clue what they are doing which is what ensignia is eluding to.