HMRC Investigation Protection

[centurian]

So I take it that as long as I am doing short term contracts with short term renewals and that the projects I am working on are clearly defined (if not in the actual contract then verbally or emailed with the client) then I am in the same boat as Mr Spencer prior to 2003.

Yep, here are the main points I see from this

1. Don't stay with a client too long. A lot of "experts" stubbornly claim this has no bearing on IR35 - advice which is starting to look like unrelenting bull-tulip. All the main IR35 losses have involved long engagements.

2. Focus on specific projects, rather than being a general fixer. This may be easier said than done, especially as time goes by - refer to point 1 again.

3. It only takes a few small points to nail you. This guy wasn't generally complacent with IR35. He even paid for his own food at the Christmas dinner. The rolling contract was obviously a mistake, but I suspect he had convinced himself that it wasn't an issue. Hindsight is a wonderful thing.

[mrdonuts]

you will end up paying 25/36/46% on dividends which you could otherwise have left in the company and ultimately get out at somewhere between 0% and 10%.

Given the stats re number of IR35 enquiries, personally I would risk it for a biscuit.

this caught my eye , i would be interested in how you get money out at between 0% and 10%

[Mister Clark]

this caught my eye , i would be interested in how you get money out at between 0% and 10%

I think s/he means after corporation tax.

0% - Below personal tax threshold for the year (drip feed any company reserves out).
10% - Entrepreneurs relief (can’t remember the HMR&C code)