Found inside IR35...would you go permy?

[quackhandle]

Reading some other threads with numbers about how many people have a limited company/umbrella, etc and how many HMRC investigations there is per year so going by the odds it isn't likely it will happen - however it COULD happen, I guess, just like we could win the lottery.

So say your investigated and found to be INSIDE (caps for effect! ) - would it be worth carrying on working as a contractor? Would it be simple as closing down Ltd company and starting again?

Or simply say balls to it all and go down the darkside to permy life?

Apologies if someone has asked this before, I couldn't find it in the search.

Thank you please.

qh

[The Wikir Man]

Inside, you still get 5% that you can claim as expenses, and you can make a little on FRS VAT.

Depends how much the contract rates to permie rates vary, and also what the life:work balance might be like. I contract so I can take long holidays - there's no permie job that will give me as much off as I like to take, unfortunately.

[northernladuk]

Why would you stop and go permie??? Just get another contract that is outside IR35 and carry on. Contracts only last for a set period so if you are in a contract that was inside and got caught your problem would only be for the duration of that contract. Just learn a lesson, make sure the next one is out and carry on with your contracting?

Seems a bit wrong to pack the whole thing in just becuase one contract is inside surely??

[quackhandle]

Cheers, it's not happened to me but I was asking sort of hypothetically and you've answered my question, simply keep calm and carry on.

It was probably the fact that if your caught once then I was guessing that HMRC would keep a beady eye on you, but yes its up to us to make sure the contract is outside.

Been contracting nearly nine years and only found this site a few months ago, have learned alot since.

Thanks

Edit: I did try going back permy last year - stuck it out for TWO whole weeks!

qh

[Stag Cozier]

If you have enough savings you could always chuck the profit you make inside IR35 into a pension pot, therefore reducing the amount of tax and NI handed over to Her Majesty's.

[zedAccounts]

>would you go permy?

I don't have a choice... I can't do permie. I've tried and I just end up wanting to leave after 6 months.

ZED.

[richy]

If you have enough savings you could always chuck the profit you make inside IR35 into a pension pot, therefore reducing the amount of tax and NI handed over to Her Majesty's.

The prob with pensions is the money is trapped away there until hitting 60? Do it yourself with ISAs and an investment property like I do.. you can sell any of it when ever you like that way! ISAs are tax free too.. would never use pensions until it becomes as flexible as an ISA.
Cheers, richy

[pmeswani]

The prob with pensions is the money is trapped away there until hitting 60? Do it yourself with ISAs and an investment property like I do.. you can sell any of it when ever you like that way! ISAs are tax free too.. would never use pensions until it becomes as flexible as an ISA.
Cheers, richy

ISA's are only tax efficient on the interest you earn and can only be made by the individual.

Pensions are tax efficient on the contributions you make. (up to 40%). If the company makes contributions direct, then yes, there is no tax claimback. But, the contribution made by the company can be higher than the individual contribution into an ISA.

[escapeUK]

If you have enough savings you could always chuck the profit you make inside IR35 into a pension pot, therefore reducing the amount of tax and NI handed over to Her Majesty's.

That idea appeals to me as it makes sure hmrc dont get anything!

Would have to get the exact sums from my accountant.

[Gaz_M]

>would you go permy?

I don't have a choice... I can't do permie. I've tried and I just end up wanting to leave after 6 months.

ZED.

Exactly how I feel. People have suggested to me that I should go permie because I can get x amount now with my experience but I simply could not do it. I struggle to do a contract beyond six months & that's when you know there's light at the end of the tunnel.