I am half way through my first contract which is caught by IR35 so use an umbrella. Lets say I set up a LTD but do not draw dividends just a salary enough to live on (leaving most of the money in the company account) then if my next contract is IR35 “friendly” can I then take dividends on all the income, (e.g.: the income from the first contract and the second)?
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handsfree is right. Each contract has got its own "IR35 stamp". Either it passes it or it doesn't. HMRC will look at each revenue stream individually as it were. So get 100% dividends from income from your 2nd contract, and do as you currently do for the income derived from your 1st contract.Chico, what time is it?Comment
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OK thanks.
Looks like I am stuck with the umbrella for the rest of this contract.Comment
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