2yr rule, umbrella or own company

[scooby]

Eh?

what is the 'eh' for?

i'm part of an LLP yet they just tax and NI my earnings as they would in a normal umbrella. i just dont appear to pay Employers NI...

its all a bit weird. plus only used a umbrella to see me through the first year of contracting.

[swebb]

I;ve never really been able to work out why anyone would use a brolly. I suppose there's convenience but that aside its just someone else grabbing a margin out of your income.

Even if you are fairly and squarely inside IR35 you can still take advantage of the flat rate VAT. Are you sure you are inside IR35? There's nothing in your original post to suggest this.

Well to be honest after reading the IR35 rules a couple of years ago I kinda assumed I was based on the way I was working. Basicaly I drive to one place of work, use there computer kit, work to there plans and do a normal 7.5hr job. However there is another contractor here now who is Ltd and thinks he is outside IR35 but doesn't seem to offer any justifcation as to why.

The more I read about IR35 the more confused by it I seem to become, it looks like a total minefield. I suppose when I got the contract I just thought I didn't want the risk of the tax man catching up on me. However I thought it was only for 6 months or so but its been exteneded and extened and now it looks like running for another 6 months atleast.

So maybe its time to revisit the whole IR35 situation as well ... mmmmm

Thanks

Steve

[Alan @ BroomeAffinity]

Its definitely worth looking at. Give your accountant a ring and see if he can give an opinion on the contract. Or if your accountant isn't keen, contact Qdos or Bauer & Cotterell

[malvolio]

Well to be honest after reading the IR35 rules a couple of years ago I kinda assumed I was based on the way I was working. Basicaly I drive to one place of work, use there computer kit, work to there plans and do a normal 7.5hr job. However there is another contractor here now who is Ltd and thinks he is outside IR35 but doesn't seem to offer any justifcation as to why.

The more I read about IR35 the more confused by it I seem to become, it looks like a total minefield. I suppose when I got the contract I just thought I didn't want the risk of the tax man catching up on me. However I thought it was only for 6 months or so but its been exteneded and extened and now it looks like running for another 6 months atleast.

So maybe its time to revisit the whole IR35 situation as well ... mmmmm

Thanks

Steve

Agreed, but snag is if you've been running your current contract as IR35-caught, you may have a bit of trouble with Hector if you suddenly decide it isn't. Practically speaking it may be better to stay with the IR35 status until you get a new contract.

In terms of understanding IR35, well it's a bit of a moving goalpost at the moment since the courts have started re-interpreting perviously established guidelines, but you could do a lot worse than read the PCG's First Timer guide (and if you haven't joined already, why not... ). The key thing to note nowadays is that it is the reality of the arrangements that define the status, the contract is only used where there is ambiguity. I'm not sure the current guide emphasises that point.

Go to www.pcg.org.uk and look from there.

[swebb]

Agreed, but snag is if you've been running your current contract as IR35-caught, you may have a bit of trouble with Hector if you suddenly decide it isn't. Practically speaking it may be better to stay with the IR35 status until you get a new contract.

In terms of understanding IR35, well it's a bit of a moving goalpost at the moment since the courts have started re-interpreting perviously established guidelines, but you could do a lot worse than read the PCG's First Timer guide (and if you haven't joined already, why not... ). The key thing to note nowadays is that it is the reality of the arrangements that define the status, the contract is only used where there is ambiguity. I'm not sure the current guide emphasises that point.

Go to www.pcg.org.uk and look from there.

Thanks for the info Malvolio I think I need to contact an acountant in the next few days, have a chat about going Ltd and what services they offer. I obviously also need to get the contract checked, the pcg looks like a good plan.

Thanks

Steve

[swebb]

Just found out the agency I am going through appear to use the PCG draft contract as a template !

So am I to take it this is good thing when attempting to indicate IR35 status ?

Cheers

Steve

[r0bly0ns]

Just found out the agency I am going through appear to use the PCG draft contract as a template !

So am I to take it this is good thing when attempting to indicate IR35 status ?

Cheers

Steve

Depends how much they change it

[swebb]

I've just compared it with the template and its basically the same except obviously they have filled in the bits where names need to be substituted!

[r0bly0ns]

If all they have done is fill in the names, then it should be IR35 safe. As long as your working practices mirror the contract....