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Returning to former employer: inside IR35?

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    #11
    Originally posted by Wanderer View Post
    Sorry fella but as Northernladuk says, you are doomed to fail the IR35 Business Entity Tests, specifically this one:

    The current end client engaged you:
    • on PAYE employment terms
    • within the 12 months which ended on the last 31 March
    • with no major changes to your working arrangements?


    You can still trade as a LTD company but you will have to account for all of this contract's income as IR35 caught and pay a fair bit of tax on it. Alternatively, if you like having an easy life (without the admin of running a company) then you can use an Umbrella. Watch out for the dodgy calculators on umbrella sites, check out this one which is fairly reliable.

    Don't be tempted by anything offering a high take home percentage (probably based off shore and/or using a tax avoidance scheme), you want a straight forward UK based PAYE umbrella.
    Thank you very much Wanderer. That helps to clarify things a bit more.

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