Is going limited worth it if you are inside IR35?

[malvolio]

Quite which is one good reason why I think I would be at risk trying to be outside IR35. I have done various of the online tests, and could tweak a contract so it passes but it still feels dodgy. Short term subs are not really an option for social work and I wouldnt be in the position to provide one either unless I form a coop and I dont think that is for me.

RE accountant fees, I was thinking that Crunch would be filling that role, their fee constitutes a £50 pm saving over umbrella fee

I am intrigued by the suggestion that I use my husband's company, thanks for the thought but I would have thought that a bit of an obvious device as his company's business bears no relationship whatsoever to mine - does that matter though?

Besides I like my independence and we have rather different views about how to run businesses ....... better we stay seperate for business purposes

There are three tests for being a real freelance. At their simplest:

* Are you told how to do the work (professional standards don't count, everyone has to work to them),

* are they bound to offer you work and can you refuse it if offered and not be paid, and

* do you have the right to offer a subsititute.

You only need one genuine one to put yourself outside IR35: all three is good but one - and a decent* representative - will suffice. I'm guesssing you can probably make the first two with reasonable ease.

Another useful rule: don't let the taxation tail wag the business dog. The idea is to earn money by selling your skills and expertise in the most efficient way you can manage.



*That is important. Get yourself properly insured or get PCG Plus memberhsip (which is much cheaper since you get a pile of other useful stuff). Every case that's been lost started with the worker answering questions for themselves.

[IR35FanClub]

Just to pip in.. isnt a third option working as a sole trader?

Not many people do it, and some agencies / companies are funny about it. most contractors consider a lot of their contracts will be outside ir35 so take the company route so they can use dividends to minimise tax. However if you think you are inside already and will be paying your PAYE and NI take a look at sole trader. You can still register for VAT ... indeed if your on a decent rate youll have to. Makes the admin less hassle than a company. But still has lower costs than an umbrella. Not sure if crunch is set up for this though. iI use them and its about minimising tax by taking divs.

[gingerjedi]

There are three tests for being a real freelance. At their simplest:

* Are you told how to do the work (professional standards don't count, everyone has to work to them),

* are they bound to offer you work and can you refuse it if offered and not be paid, and

* do you have the right to offer a subsititute.

You only need one genuine one to put yourself outside IR35: all three is good but one - and a decent* representative - will suffice. I'm guesssing you can probably make the first two with reasonable ease.

Another useful rule: don't let the taxation tail wag the business dog. The idea is to earn money by selling your skills and expertise in the most efficient way you can manage.



*That is important. Get yourself properly insured or get PCG Plus memberhsip (which is much cheaper since you get a pile of other useful stuff). Every case that's been lost started with the worker answering questions for themselves.

So being told not to come in for 2 weeks is good? It happened to me recently.

[socialworker]

Just to pip in.. isnt a third option working as a sole trader?

Not many people do it, and some agencies / companies are funny about it. most contractors consider a lot of their contracts will be outside ir35 so take the company route so they can use dividends to minimise tax. However if you think you are inside already and will be paying your PAYE and NI take a look at sole trader. You can still register for VAT ... indeed if your on a decent rate youll have to. Makes the admin less hassle than a company. But still has lower costs than an umbrella. Not sure if crunch is set up for this though. iI use them and its about minimising tax by taking divs.

I am pretty sure in my line of bussess you can be employed PAYE by the agency or you can be limited/umbrella - Sole trader is not an option as they are too worried about ending up liable for your tax, though it would be more sensible given the turnover.

[northernladuk]

Just to pip in.. isnt a third option working as a sole trader?

Not many people do it, and some agencies / companies are funny about it. most contractors consider a lot of their contracts will be outside ir35 so take the company route so they can use dividends to minimise tax. However if you think you are inside already and will be paying your PAYE and NI take a look at sole trader. You can still register for VAT ... indeed if your on a decent rate youll have to. Makes the admin less hassle than a company. But still has lower costs than an umbrella. Not sure if crunch is set up for this though. iI use them and its about minimising tax by taking divs.

http://forums.contractoruk.com/accou...ntractors.html

[malvolio]

So being told not to come in for 2 weeks is good? It happened to me recently.

Very good if you didn't get paid. Bloody awful if you did.

[LandRover]

BAckwards step and enforcement is key IR35 trigger?

BBC News - Teleworking: The myth of working from home

Yahoo has banned its staff from "remote" working. After years of many predicting working from home as the future for everybody, why is it not the norm?

When a memo from human resources dropped into the inbox of Yahoo staff banning them from working from home it prompted anger from many of its recipients.

[Clare@InTouch]

BBC News - Teleworking: The myth of working from home

Yahoo has banned its staff from "remote" working. After years of many predicting working from home as the future for everybody, why is it not the norm?

When a memo from human resources dropped into the inbox of Yahoo staff banning them from working from home it prompted anger from many of its recipients.

Depends on the other factors - insisting someone works from the office covers the Where of Control, but there's still How and When. Plus Substitution and Moo.

[northernladuk]

BBC News - Teleworking: The myth of working from home

Yahoo has banned its staff from "remote" working. After years of many predicting working from home as the future for everybody, why is it not the norm?

When a memo from human resources dropped into the inbox of Yahoo staff banning them from working from home it prompted anger from many of its recipients.

Not enough detail really to confirm if it is nor not as it doesn't mention contractors but I can't see it being an IR35 trigger as the client is just changing it's stance on working methods across the board. Just because you are a contractor doesn't mean you don't have to professionally respect the clients working policies and just because you adhere to them doesn't mean you are a hidden permie either.

[LandRover]

Depends on the other factors - insisting someone works from the office covers the Where of Control, but there's still How and When. Plus Substitution and Moo.

Agree there are other factors, but a bit of a blow to having control in how work is carried out when they are telling you to come into office.

In the end Yahoo loss, as i suspect some will go elsewhere