Expert Advice needed

[MrMarkyMark]

+1. Can't believe the advice he's given to a newbie looking for help. With those rose tinted glasses and a total lack of understanding/judgement of the facts staring you in the face maybe he should apply for the England Manager job!

This being a case in point where the advice is worth less than the OP paid for it

[Qdos Contractor]

Ultimately the decision as to whether to operate via a limited company or an umbrella company must be your own. However I would consider if you will be operating inside or outside of IR35? This point will have a big effect on whether operating via a limited company will be the best option or not.

If you are genuinely operating outside of IR35 you will be able to take advantage of the tax advantage of operating a limited company as well as claiming travel & subsistence (T&S) relief. However if you are inside of IR35 you would need to operate a deemed payment and T&S relief would not be allowed. If you are unsure of your IR35 position I would suggest seeking independent professional advice.

A 12 month rolling contract isn’t ideal, although would not be a conclusive issue alone. It would be more in line with self-employment for the contract to be a set period and then at the end of the period be renegotiated terms and draft a contract extension.

If operating via an umbrella company, to be able to claim the T&S relief the Supervision, Direction or Control (SDC) test must be considered. If you are not subject to SDC or a right of SDC then the T&S relief may be claimed. Again if you are unsure I suggest you seek independent professional advice.

Jon

[northernladuk]

Don't forget about the 24 month rule though. With a 12 month rolling contract you can only claim for the first 12 months. The second 12 month rule is going to put you over the 24 month rule so you can't claim anything T&S related for the second 12 months. It's reasonable to expect you'll be there for 24 months even if you aren't so you can't claim.

There is an example which covers the situation where a placement is expected to extend past 24 months but in fact doesn't. Still can't claim.

Example
Hassan has worked for his employer for 3 years and is sent to perform full-time duties at
a workplace for 28 months. The posting is unexpectedly ended after 18 months. No tax
relief is available for the cost of travel between his home and the workplace, because his
attendance is expected to exceed 24 months (though in fact it does not). The workplace is
therefore a permanent workplace and the journey is ordinary commuting.

I'll be willing to bet there are a lot of contractors out there that claim even though the expectation is to be there 24 months but think they can keep it if the contract ends early.

[ChimpMaster]

This advice is so awful that I've taken the rare step in Professional of removing it completely.

I've informed uk contractor to improve his advice if he wants to stay.

Damn I always miss the interesting posts.

Was his advice something like "Vote Leave" ?

[northernladuk]

Damn I always miss the interesting posts.

Was his advice something like "Vote Leave" ?

My two links might give you a clue. It was completely the opposite to what those links explain.

[SlipTheJab]

My two links might give you a clue. It was completely the opposite to what those links explain.

In a later post he was also observed to advise a Turkey to vote for Christmas