Limited Company in IR35

[kingcook]

Jesus Christ.....

How can I help you?

[northernladuk]

How can I help you?

Not me that needs divine intervention on this thread

[Gemma at Qdos]

You need to get your contract reviewed and review your working practices. Once you have determined your status, then consider how your tax will work.

If you are 'inside' IR35 then you will need to pay tax/NIC as a deemed employee i.e all income minus the expense allowance.

Get your contract and working practices reviewed by a professional and an accountant that deals with limited company contractors.

There is a list of such accountants here; mod snip.

Hi Gemma, please read the T&Cs of this board as that looked dangerously like advertising.

[Wanderer]

Would it make sense to not pay any salary and pay corporation tax on the profit? if so, is the net amount that's left, mine to withdraw as cash?

Make sure you haven't jumped to conclusions about your IR35 status. Invest in an IR35 contract review (you can get an accountant or one of the specialists to do this) and see what your status is before you go paying thousands in tax that you may not have to pay.

If you are IR35 caught, then see if there is anything you can do to restructure your working practices.

If you are definitely IR35 caught then you have to pay the tax as if it were salary, that's pretty much the end of the story. There is pretty much no workaround other than to stash it in a pension if you are that way inclined.

[Sausage Surprise]

Would it make sense to not pay any salary and pay corporation tax on the profit? if so, is the net amount that's left, mine to withdraw as cash?

******* hell.....

[LandRover]

Guidance for IR35 compliance

HMRC tests are available and appears many bog standard freelancers will be caught.

http://www.hmrc.gov.uk/ir35/guidance.pdf

From next year contractors working through a PSC will have to declare their IR35 status on their self-assessment tax return, if they declare that they are outside, which is financially beneficial, they will be required to prove it to HMR&C. Before the new guidance, IR35 investigations were random to a certain degree but now those declaring that they are outside IR35 will be targeted and the burden of proof is on the individual and not on HMR&C.

[quackhandle]

HMRC tests are available and appears many bog standard freelancers will be caught.

http://www.hmrc.gov.uk/ir35/guidance.pdf

From next year contractors working through a PSC will have to declare their IR35 status on their self-assessment tax return, if they declare that they are outside, which is financially beneficial, they will be required to prove it to HMR&C. Before the new guidance, IR35 investigations were random to a certain degree but now those declaring that they are outside IR35 will be targeted and the burden of proof is on the individual and not on HMR&C.

Is that not just for public sector gigs?

qh

[LisaContractorUmbrella]

Is that not just for public sector gigs?

qh

Nope that's for everyone

[ELBBUBKUNPS]

Nope that's for everyone

When you say 'next year' are you refering to the tax return for tax year April 12- April 13 will that include the question ?

[LandRover]

IR35 in 2013 Finance Bill

IR35 business entity tests published | AccountingWEB

Finance Bill could spell the end of IR35

http://www.hm-treasury.gov.uk/d/pers...s_and_IR35.pdf

Changes to ‘IR35’ legislation

The Government has announced changes to the intermediaries legislation (commonly called IR35) that will impact individuals who hold an office (an executive or non-executive director) on the board of a company and are paid via a personal service company (PSC). Historically, there has been a view that income received by a PSC does not fall within the existing IR35 legislation and is therefore not treated as employment income subject to PAYE. The changes announced today will bring individuals who hold an office through a PSC within the scope of the IR35 legislation.

From 6 April 2013 any payment to a PSC from a third party for the provision of an individual as an ‘office holder’ will be deemed to be employment income whether the PSC or the individual is registered as the office holder of the engager. This means that HMRC can invoke IR35 and seek recovery of tax under PAYE from the PSC when PAYE has not already been applied. This places office holders in the same position as contractors and other workers that currently have to apply IR35