Contractor, IR35 Issues, Running Ltd Company

[johnywalker]

You need to enlist the services of a specialist accountant. If, on the face of it, your contract falls inside but that can be worked on. Its complicated in any event keeping it inside the existing company. Either set up yuor own ltd co for the contracting side only - even if IR35 caught - there are advantages or sign up with a brolly.

Is there any advantage apart from the 5% expense without bills and maybe register for flat scheme vat? AM I missing something?

ANd the 5% expense, can I take it just like that, as a lumpsum into my account or should that be used through the company for company expenses?

Thanks,
JOhny.

[Bluebird]

Flat rate scheme can "increase" your revenue, as the VAT you pay the taxman is generally LESS that that which you charge when you invoice your clients.

However, the vate that will apply is determined by your business category & turnover, as you are running more than one business and possible more than one business type you may not be able to register for the FRS - give you local VAT man a ring he will tell you where you stand.

As regards the "lump Sum" expenses, I believe that you should still be able to provide proof of expenditure to HMRC if and when they request it, so I'm pretty sure that you can't "claim" £5K if you've actually only incurred £3k.

As yours in not a straightforward case, I'd enlist the services of an accountant who will know be able to sort you out initally.

By the way I'm not an accountant so this advice is my own personal view.