Creating a new company and putting the old one to bed

[Mr.Whippy]

IR35 doesn't loom - you're either inside or outside from day one.

Generally this is right, but has now been proven to not always be the case... such as JLJ Services and the split IR35 case....

[kingcook]

Lets assume someone has been contracting at a client for just short of 2 years with a limited company going via an agency. IR35 looms.

I was surprised to hear other contractors who i've spoken to recently, saying things like this. They assume that once you work for a client for 2+ years, you're IR35 caught. I tried to explain that they were getting mixed up with the 24 month expenses rule, about D&C, MOO, RoS too.

It kinda fell on deaf ears though as i heard later on that they aren't going to accept any renewals because they don't want to be there for 2+ years and be IR35 caught

[MickeyP]

I was surprised to hear other contractors who i've spoken to recently, saying things like this. They assume that once you work for a client for 2+ years, you're IR35 caught. I tried to explain that they were getting mixed up with the 24 month expenses rule, about D&C, MOO, RoS too.

It kinda fell on deaf ears though as i heard later on that they aren't going to accept any renewals because they don't want to be there for 2+ years and be IR35 caught

An accountant friend of my wife said something similar and was warning me I should move on! I laughed in her face!

[jamesbrown]

An accountant friend of my wife said something similar and was warning me I should move on! I laughed in her face!

The misinformation is rife. I was reading one of the many articles (in one of the daily broadsheets) following the recent public sector remuneration debacle, and they had some tax lawyer spouting about how any contractor with a single client was "bang to rights" w/r to the intermediaries legislation. My sister is a qualified accountant and she was supposedly taught something along the same lines. That's why it's in our best interests to know the details and get a specialist contractor accountant and the appropriate memberships.

[SueEllen]

An accountant friend of my wife said something similar and was warning me I should move on! I laughed in her face!

Since I know a few accountancy contractors who actually work like IT Contractors I find it amusing.

Though I do like asking accountants what a "Personal Service Company" is and how it differs from a normal limited company.