I have two offers (Inside IR35 - £550 and Outside IR35 - £550) but as per my situation (Claimed entrepreneurs tax relief last year) I will have to go through an Umbrella company. If we go through an umbrella is there any difference between the inside and outside contract rates? Would the take home pay be the same? I heard we don't need to pay Employer's NI for the Outside IR35 contract (Public sector), can someone please explain if this is possible? Thanks
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Difference between inside and outside contracts for Umbrella company route
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Originally posted by indianguy View PostI have two offers (Inside IR35 - £550 and Outside IR35 - £550) but as per my situation (Claimed entrepreneurs tax relief last year) I will have to go through an Umbrella company. If we go through an umbrella is there any difference between the inside and outside contract rates? Would the take home pay be the same? I heard we don't need to pay Employer's NI for the Outside IR35 contract (Public sector), can someone please explain if this is possible? Thanks
People only use MVL if they move from contracting to permanent employment."I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
- Voltaire/Benjamin Franklin/Anne Frank... -
Originally posted by indianguy View PostI have two offers (Inside IR35 - £550 and Outside IR35 - £550) but as per my situation (Claimed entrepreneurs tax relief last year) I will have to go through an Umbrella company. If we go through an umbrella is there any difference between the inside and outside contract rates? Would the take home pay be the same? I heard we don't need to pay Employer's NI for the Outside IR35 contract (Public sector), can someone please explain if this is possible? ThanksSee You Next TuesdayComment
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Originally posted by cojak View Post
If you have gone through MVL, then you will have to use an umbrella (and be inside). It will be 2 years before you can use a Ltd (and accept outside contracts) for the same line of work.
People only use MVL if they move from contracting to permanent employment.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View Post
I think he knows that as he's already stated he needs to use a brolly. Technically, using a brolly doesn't make the gig inside though does it? He can still have an SDS stating outside but go through a brolly. Not sure that level of pedantry makes any difference whatsoever but it's still worth being technically accurate with the sitaution?Comment
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Originally posted by indianguy View Post
Thank you. Yes, thats my exact question. Also is there a way to pay back the tax relief that I received so that I can open another limited company? or would that open another can of worms?
IMO you've made the decision, gained a very tasty tax advantage so now have to see it through. Lets call it a tax on short sighted thinking. You aren't the first and judging by the number of knee jerk MVL posts we've seen I am sure there is going to be many many more to come.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by indianguy View Post
Thank you. Yes, thats my exact question. Also is there a way to pay back the tax relief that I received so that I can open another limited company? or would that open another can of worms?
https://www.businessrescueexpert.co....y-liquidation/I'm alright JackComment
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Originally posted by northernladuk View Post
Someone touted that as an option on a different thread and got shot down. Where there might be something in the theory I can't believe HMRC are going to be pleased you've used a mechanism and then backtracked when it suits you to pay less tax to them.
IMO you've made the decision, gained a very tasty tax advantage so now have to see it through. Lets call it a tax on short sighted thinking. You aren't the first and judging by the number of knee jerk MVL posts we've seen I am sure there is going to be many many more to come.Comment
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Originally posted by cojak View Post
If you have gone through MVL, then you will have to use an umbrella (and be inside). It will be 2 years before you can use a Ltd (and accept outside contracts) for the same line of work.
People only use MVL if they move from contracting to permanent employment.Comment
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