Hi,
I've been using an umbrella for two years now but I am seriously considering forming a Ltd company. I've spoke to SDJ just to get a few pointers and it doesn't seem too much hassle to get the ball rolling and not too much paper work. However my main concern has always been the grey area surrounding IR35 and its possible long term impact on me should the IR man come knocking on the door (no house here by the way so he can't take that lol).
Nearly all contractors I know seem to take the view that there are so few contractors who get followed up about IR35 they just ignore it and run their companies as though they are outside IR35. Most tell me that if you are just taking on regular contracts less than a year in timespan then its not an issue. From reading various things on here and the web its still not clear to me if this is really the case. Any opinions ?
My contracts so far have all been 3 months in length initially but usually get extended 3 months at a time and upto a total length at a client of 1yr in total. I work at the clients site mainly due to them not liking their s/w on my kit and also this means I work their hours ! How does the IR view this as the contracts are short in length originally but get extended ? Contracting friends tell me that these contracts fall outside IR35 bit I'm not so sure.
Any comments or opinions would be gratefully received
PS: If I set up a ltd company the 1st contract will be with a client I have been with via the umbrella for some time but they are about to extend for 3 months. Would the IR view this as a 3 month contract or include the previous time with the client as well ?
Steve
I've been using an umbrella for two years now but I am seriously considering forming a Ltd company. I've spoke to SDJ just to get a few pointers and it doesn't seem too much hassle to get the ball rolling and not too much paper work. However my main concern has always been the grey area surrounding IR35 and its possible long term impact on me should the IR man come knocking on the door (no house here by the way so he can't take that lol).
Nearly all contractors I know seem to take the view that there are so few contractors who get followed up about IR35 they just ignore it and run their companies as though they are outside IR35. Most tell me that if you are just taking on regular contracts less than a year in timespan then its not an issue. From reading various things on here and the web its still not clear to me if this is really the case. Any opinions ?
My contracts so far have all been 3 months in length initially but usually get extended 3 months at a time and upto a total length at a client of 1yr in total. I work at the clients site mainly due to them not liking their s/w on my kit and also this means I work their hours ! How does the IR view this as the contracts are short in length originally but get extended ? Contracting friends tell me that these contracts fall outside IR35 bit I'm not so sure.
Any comments or opinions would be gratefully received
PS: If I set up a ltd company the 1st contract will be with a client I have been with via the umbrella for some time but they are about to extend for 3 months. Would the IR view this as a 3 month contract or include the previous time with the client as well ?
Steve
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