Inside IR35 but Ltd Co

[Turion]

If you want the job, then take it. Use ltd co and declare outside IR35. When you leave (if it goes for 1yr or more) close your ltd co and start afresh for the next contract. The same goes for anyone worried about IR35 or anyother possibility of a grab by the taxman. you should not leave a large chunk of money building up in the company. It makes a very tempting target for hungry Hector.

[Fred Bloggs]

IR35 is a personal tax, not a company tax. How will opening/closing down companies prevent you from being caught? Having no money to pay Hector does not prevent him chasing you.

[malvolio]

IR35 is a personal tax, not a company tax. How will opening/closing down companies prevent you from being caught? Having no money to pay Hector does not prevent him chasing you.

Yep, agreed. Clearly another barrack room expert with 50% understanding tof the facts.

[Turion]

You 'experts' are good at quoting the rule book. That just makes you a bigger target. My stategy, is to examine the enemies tactics and then devise the best way of avoiding undue attention (ie an investigation). HMRC is the predator, we are the prey.

The Taxman, like any other predator will only attack what it can see. Therefore (1) Be inconspicuous. The bigger the lump of money or longer the length of time a ltd co operates increases the likelyhood of investigation. (2) If there is never an investigation there will never be a problem.

[ruth11]

Does the contract stipulate you have to work 8 hours? Or does it say something about having to be available for the client during a professional day?

Are you told how to do the support work?

Are you involved in how the work is dished out? For example if they are dishing the work out and you speak up first, do you get that work?

No, contract states "Standard hours in normal working week: 40"
But client stipulates I work 9-5.30 (go figure, with 1 hour lunch as per others, that doesn't add up I know!), but can negotiate different hours (same number, just different time - say 8-4.30) once up and running.

No, not told HOW to do the work.

No, not involved in dishing the work out. Generally don't see what work's on until it's passed on. Although when on project, all project work comes to me and I decide when and how it's done.

[ruth11]

And join the PCG...

I am a member of the PCG and have been from the moment I became a contractor.

[malvolio]

I am a member of the PCG and have been from the moment I became a contractor.

OK, that's good. Out of interest, have you asked this question on their fora?

[Archangel]

You 'experts' are good at quoting the rule book. That just makes you a bigger target. My stategy, is to examine the enemies tactics and then devise the best way of avoiding undue attention (ie an investigation). HMRC is the predator, we are the prey.

The Taxman, like any other predator will only attack what it can see. Therefore (1) Be inconspicuous. The bigger the lump of money or longer the length of time a ltd co operates increases the likelyhood of investigation. (2) If there is never an investigation there will never be a problem.

So "Phoenixing" every year won't attract attention then? Sheesh.

[malvolio]

You 'experts' are good at quoting the rule book. That just makes you a bigger target. My stategy, is to examine the enemies tactics and then devise the best way of avoiding undue attention (ie an investigation). HMRC is the predator, we are the prey.

The Taxman, like any other predator will only attack what it can see. Therefore (1) Be inconspicuous. The bigger the lump of money or longer the length of time a ltd co operates increases the likelyhood of investigation. (2) If there is never an investigation there will never be a problem.

Naive, TBH. Evidence is that routine enquiries are not actually targeted but are on a random choice basis. However individuals who file incorrect or late returns, have salaries under NMW and high dividends, who routinley close and open companies or who show significant earnings variations year-on-year on their SA forms are likely to wave a small flag that may trigger an query that may in turn become an IR35 (or S660 or FBT) investigation.

We are not the prey, that is the wrong attitude. I run a fuly legitimate, solvent UK company. There are rules of operation which I observe and I know pretty much where I stand on my legal obligations and status assessments. If Hector wants to challenge that then he is welcome to do so, but I will contest and appeal all the way to the HoL if I have to in order to prove I'm not breaking any laws by working as I do.

[Fred Bloggs]

Get a life, they're opinions. They're like ar5e holes,everyone has one.

Fly below the radar is good advice. Starting a new company every 12 months is "flying below the radar"?