Starting a Ltd company and avoiding IR35

[NJBrearley]

I recently spoke to an accountant and discovered that avoiding IR35 is as simple as having 2 income streams into your Ltd company and that my current set up completely avoids it!

Is this true? How have others dealt with this? Do the income streams have to be related?

[malvolio]

I recently spoke to an accountant and discovered that avoiding IR35 is as simple as having 2 income streams into your Ltd company and that my current set up completely avoids it!

Is this true? How have others dealt with this? Do the income streams have to be related?

Ermm - I hope you're not paying him for advice. Now go ask an accountant what knows that they're talking about.

IR35 is on a per-contract basis; how many concurrent ones you have doesn't matter.

[Bluebird]

What Mal said.

You can have 1 contract that is inside IR35 and another that is outside.

Next.

[NJBrearley]

Ok quick read on IR35 says that this is relevant and does avoid it:

Factors to Consider

The IR will consider the whole picture but some factors can be:
What is the client’s business?

Is there any form of contract?

Is the contractor at financial risk in the project?

Is the contractor working exclusively only for one client?

[TheFaQQer]

I recently spoke to an accountant and discovered that avoiding IR35 is as simple as having 2 income streams into your Ltd company and that my current set up completely avoids it!

Is this true? How have others dealt with this? Do the income streams have to be related?

No, it's not true. You can have multiple streams, some inside IR35 and some outside.

Get a better accountant.

[NJBrearley]

Fair enough,

Could you give me an example of where that may be the case.

P.s It's probably not the accountants fault, it may be the way I interpreted what he was saying. It was a free consultation anyway.

[Alan @ BroomeAffinity]

You need to understand what IR35 is and how it relates to your company and its contracts. And get a new accountant - one that understands the contractor market because IR35 relates to the contract not the business. You could have 5 contracts on the go - one for each day of the week and still be completely inside IR35. You can PM me if you want more info.

[Kylie4485]

A contract can be written to fall outside IR35, but if you are investigated and reality doesn't match your contract, you will be in trouble

[Jason D]

Ir35

I find it very difficult to believe that an accountant would say this.

Usual knee jerk "Get a new accountant" cry

Sometimes what people are told is different to what they hear.

[TheFaQQer]

I find it very difficult to believe that an accountant would say this.

Usual knee jerk "Get a new accountant" cry

Sometimes what people are told is different to what they hear.

I don't.

I find it very difficult to believe that a competent accountant would say this.