Originally posted by jojingles
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Moving to contracting- need your brain power!!
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Originally posted by jojingles View Post
Thank you for responses, I can see where you are coming from.
The other way is just to accept that this contract is within IR35 and continue to develop my business through my limited company as any new contracts would then be on an outside IR35 basis.
If I did this would it be worth using an umbrella or just deal with it all within the limited company.
Thanks again for your time, it's a minefield and just trying to get my head round it all.
You may now be realising you have a steep learning curve, there are lots more issues than just IR35 to consider. As I've said to others in the past, you are taking on a new job, that of being a contractor: what skills you use at work actually to earn money are irrelevant. You have to make a serious mental adjustment in your thinking; commercially, for example, we are now your competitors...
There are good guides around, on this site, at IPSE.CO.UK and several of the better accountants. Study them. Get a good accountant (check out the sticky thread in the accounting board for suggestions) and above all, remember KISS - Keep It Simple and Straightforward. Not doing so can get expensive!Blog? What blog...?Comment
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Originally posted by malvolio View Post
If it's inside IR35 then there's absolutely zero point (or benefit) is using YourCo. Go with a brolly and keep this work and any new stuff entirely separate.
You may now be realising you have a steep learning curve, there are lots more issues than just IR35 to consider. As I've said to others in the past, you are taking on a new job, that of being a contractor: what skills you use at work actually to earn money are irrelevant. You have to make a serious mental adjustment in your thinking; commercially, for example, we are now your competitors...
There are good guides around, on this site, at IPSE.CO.UK and several of the better accountants. Study them. Get a good accountant (check out the sticky thread in the accounting board for suggestions) and above all, remember KISS - Keep It Simple and Straightforward. Not doing so can get expensive!
If I consider this contract inside IR35 then does anything really matter such as if I work at an employers premises or what have you? I assume not, rather than try to stay on the outside I may as well just keep going as I am and act like an employee for this contract. Have a company email etc. etc.
Obviously for anything other than this contract when using my limited company I would not but if it is in IR35 do I need to be concerned with anything?Comment
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Originally posted by jojingles View Post
Thank you. I am starting to understand the journey I am going to go on!!!
If I consider this contract inside IR35 then does anything really matter such as if I work at an employers premises or what have you? I assume not, rather than try to stay on the outside I may as well just keep going as I am and act like an employee for this contract. Have a company email etc. etc.
Obviously for anything other than this contract when using my limited company I would not but if it is in IR35 do I need to be concerned with anything?Comment
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Originally posted by malvolio View Post
If it's inside IR35 then there's absolutely zero point (or benefit) is using YourCo. Go with a brolly and keep this work and any new stuff entirely separate.
You may now be realising you have a steep learning curve, there are lots more issues than just IR35 to consider. As I've said to others in the past, you are taking on a new job, that of being a contractor: what skills you use at work actually to earn money are irrelevant. You have to make a serious mental adjustment in your thinking; commercially, for example, we are now your competitors...
There are good guides around, on this site, at IPSE.CO.UK and several of the better accountants. Study them. Get a good accountant (check out the sticky thread in the accounting board for suggestions) and above all, remember KISS - Keep It Simple and Straightforward. Not doing so can get expensive!
Just go part-time. That's what we're talking about here so what benefit id there in over-complicating it?See You Next TuesdayComment
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Originally posted by Lance View Post
why even bother with an umbrella?
Just go part-time. That's what we're talking about here so what benefit id there in over-complicating it?
That said, chances are they haven't even considered where the money is coming from...Blog? What blog...?Comment
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Originally posted by jojingles View Post
Thank you. I am starting to understand the journey I am going to go on!!!
If I consider this contract inside IR35 then does anything really matter such as if I work at an employers premises or what have you? I assume not, rather than try to stay on the outside I may as well just keep going as I am and act like an employee for this contract. Have a company email etc. etc.
Obviously for anything other than this contract when using my limited company I would not but if it is in IR35 do I need to be concerned with anything?
You need to be a lot more clued up before you hit the contracting world.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View Post
You need to be concerned you mention 'employers premises' and the fact you think that as well as having a company mail are much to do with IR35. You also seem to be forgetting where the determination comes from.
You need to be a lot more clued up before you hit the contracting world.
I think I will look to use an umbrella for this contract and create a limited company for everything else.
It is difficult to convey understanding in short online exchanges but I am okay on most things but I was not really sure regarding this particular issue that I faced. Normal assignments outside of one with my previous employer should (in theory) be easier to navigate!!
I am sure I will have other questions and issues which I hope you will be able to assist me on, as I am sure other people have assisted you all on as you went through your journeys.
Thanks all.Comment
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Originally posted by jojingles View Post
Exactly, hence why I am here learning.
I think I will look to use an umbrella for this contract and create a limited company for everything else.
It is difficult to convey understanding in short online exchanges but I am okay on most things but I was not really sure regarding this particular issue that I faced. Normal assignments outside of one with my previous employer should (in theory) be easier to navigate!!
I am sure I will have other questions and issues which I hope you will be able to assist me on, as I am sure other people have assisted you all on as you went through your journeys.
Thanks all.
There is also the permie mentality which needs changing but no guides on that really. The people you will be working for are NOT your employers, they are your clients. You could argue that point but better to avoid terms like employer while you get your head around the game. This will be much simpler when you've cut ties with your old employer and can't fall in to bad habits.
If you are going to run a true micro consultancy then non of this will be an issue. If you are going to just be a bod doing stuff for clients then it's very important. You now need to learn to become a contractor. Having IT Skills doesn't cut it. The permies have that, you now need to think and act like a business and bring other skills forward. Hitting the ground running, managing client expectations, managing your contracts and finances properly, knowing and managing the risks that come with contracting (bench time, no rights etc) and so on. The IT stuff is secondary, anyone can do that.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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One other note of caution, to you and others...
A key IR35 cased is meandering through the courts at the moment. It has now been sent back to the FTT level for e-assessment, since the High Court has said, in a precedent setting ruling, that you must not rely on just one of the key indicators but should fully assess all three in combination. Which is not what many - including a couple of magic bullet salesmen - think.
On the bright side they also said that HMRC's interpretation of MOO, that it is present if payment is made for work done, is completely wrong (as some of us have been saying for years) meaning inter alia that CEST is also wrong and needs a significant update.Blog? What blog...?Comment
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