inside IR35 expense

**Sockpuppet** · 11 July 2008, 09:41

Originally posted by chrisl View Post

I have been inside IR35 for a number of years now using my own limited company.

I have had problems with my agency and have recently been to court and it has been agreed that i have to settle around £3,000 to them for the problems that have gone on.

Because of the problems i stopped using my company last year and will look to shut it down soon. I opened up a new one and now work through a new agency too also inside of IR35.

Now i have not got £3,000 spare so i need a loan. I can not take a directors loan as my new company does not have much money in it yet, i havnt been trading for long.

Being inside of IR35 am i right in that i can not claim this loan as an expense anyway. My old company is not trading any longer so i can not claim it against the old company but can i take a personal loan in respect of the problems i had when using the old company and claim an expense against the new company.

Really my question is, can i do anything with the loan i need to get, can i claim anything and reduce my tax liabilities? What is the best way to deal with this problem?

Simple answer: No.

Your old and new companies are different legal entities you can't do this.

If your inside IR35 just go umbrella. esp if you plan to keep getting taken to court

**ratewhore** · 11 July 2008, 09:45

I'd concur on the brolly option if you are within IR35.

Re the debt, whose is it? Your's personally or your companies which you have closed down? If it's the companies, how liable are you personally for it?

Go and speak to a solicitor, they'll offer more value than anyone here.

**Lewis** · 11 July 2008, 09:54

Originally posted by ratewhore View Post

Re the debt, whose is it? Your's personally or your companies which you have closed down? If it's the companies, how liable are you personally for it?

Exactly what I was thinking.

**Lewis** · 11 July 2008, 09:58

And if it was due to a problem with your work did you have professional indemnity insurance?

**chrisl** · 11 July 2008, 10:27

Well they are asking me for the money so i assume it is my personal debt not the company.

No PI insurance im afraid.

**basshead** · 11 July 2008, 10:35

Originally posted by chrisl View Post

Well they are asking me for the money so i assume it is my personal debt not the company.

Forget what they say, what does the judgement say...making assumptions is foolhardy IMHO.

**Lewis** · 11 July 2008, 10:51

Originally posted by chrisl View Post

Well they are asking me for the money

Who the agency or the courts? Did you go to the court case? Was the 'defendant' you personally or your company. Are you prepared to provide a bit of background to why the money is due?

**EvilWeevil** · 11 July 2008, 11:00

Originally posted by chrisl View Post

Well they are asking me for the money so i assume it is my personal debt not the company.

In that case, can I have three grand please.

**Accountax Consulting** · 15 July 2008, 10:11

just a general piece of advice - I would suggest you have your contract reviewed, if you have not already done so, to make absolutely sure you should be operating inside of IR35.

Secondly if you are considering an umbrella company please see the umbrella company thread and the advice given there.

inside IR35 expense