sorry guys! Another IR35 question.

[kknandoo]

Hi guys,

I have been contracting with public sector client for the past 3 years ( by April 2011). I have been given 3 * 12months contracts after initial 6 months. I have been contracting under my Limited company?

Will there be any issues with Taxman regarding this? I am in bit of panic as my manager informed me that HMRC investigated couple of cases in the organization , though in their case the contract was b/w the client and the contractor. While in my case it is b/w the client & my limited company.

Should I relax?

Thanks
Nandoo

[malvolio]

Hi guys,

I have been contracting with public sector client for the past 3 years ( by April 2011). I have been given 3 * 12months contracts after initial 6 months. I have been contracting under my Limited company?

Will there be any issues with Taxman regarding this? I am in bit of panic as my manager informed me that HMRC investigated couple of cases in the organization , though in their case the contract was b/w the client and the contractor. While in my case it is b/w the client & my limited company.

Should I relax?

Thanks
Nandoo

You want to try that in English?

But yes, relax. It'll soon be Christmas.

HTH

[northernladuk]

You want to try that in English?

But yes, relax. It'll soon be Christmas.

HTH

WB Mal!! Haven't seen you for a bit...

To the OP...

Go and read up on IR35 and make your own judgement. You seem aware there are plenty of other Ir35 posts on here so have a dig about. I am sure there are similar questions and plenty of generic responses that will help you but....

Read your contract and look at how you work. Understand about mutual obligation and client direction and how it applies to you. Understand the freedom to do the work under your terms. That is what will cause you most problems with IR35. There are many factors some minor, some major. If your contract and working conditions fall out of IR35 it shouldn't matter how long you contract for.

There should be nothing wrong with long contracts as some companies have B2B contracts for many years but I would make absolutely sure you can demonstrate you are clearly out when talking 12 month contracts. Are you on a pro-rata type contract with your rate given as a lump sum like £40k per year pro rata or daily ?

As I say it isn't major BUT it could look like the start of a probelm so make sure everything is as tight as a gnats chuff.

Just a side note.. you are aware of the 2 year rule?