Contractor with 2 IR35 Contracts

[eek]

Why are people assuming the OP is using 2 different umbrella firms - he could easily be running both contracts via the same umbrella firm (it's one of the things / benefits they are supposed to do).

Usually though people are running 2/3 part time contracts through an umbrella not 2 full time ones.

As for the OP's question apart from putting money into a pension there is nothing you can do as PAYE is about tax being paid in realtime. It's not a like a limited company where money can be left partly taxed (Corporation tax paid) and extracted later.

[SSD13]

Hi

I am using two different Umbrella Companies as I assumed this was the perspective norm and to keep things simple
If your suggestion using one would that not cause a potential conflict of issues with the Umbrella Company in question?

[eek]

Hi

I am using two different Umbrella Companies as I assumed this was the perspective norm and to keep things simple
If your suggestion using one would that not cause a potential conflict of issues with the Umbrella Company in question?

No I'm saying that I know people who do that.

But then again I wouldn't be suggesting that you did 2 full time inside IR35 contracts as both will have requirements on your time between 9am and 5pm (as they are contract of / for services rather than contracts for delivery)...

[SSD13]

The Hours issue one starts late and finishes late so I manage to fit it into my schedule for the time being

[porrker]

How does your tax code work in this situation? They cant both use your tax code.

[eek]

How does your tax code work in this situation? They cant both use your tax code.

One will be on emergency tax - so I hope they aren't just taking 20% off because that will be another bill on the OP's tax return.

But basically 1 umbrella will be his main employer and can correctly do RTI calculations - the other will be secondary employer running W1M1 tax calculations which will hopefully result in roughly the correct amount of tax being paid but that may not be the case - we saw an issue a couple of years back where someone was being paid on a W1M1 basis with everything deducted at 20% and had a very nasty surprise at the end (worse he had spent the money and couldn't pay HMRC).

[SSD13]

Hi

The Tax Codes I am on are D1 K559 and D0 would any of the Umbrella Companies know about this or query this as this is related to HMRC
I have concurrently done 2 Insides previously and recently was Outside but the Contract finished last year and I could only pick up Insides for the time being.

I understand there is extra tax to pay and I can save this if I pay more into a Pension but now with the conversation is there a risk of being caught out by one Umbrella for the different tax codes?

Do other individuals work 2 Inside IR35 roles concurrently?

Thanks again

[TheDude]

Hi All

Worked Outside IR35 Last year however difficult landing one this year and picked up 2 Inside IR35 (Tax is a B***H) as you can imagine

Any ideas on how I can save paying the 40-45% Tax Brackets

I am new to the IR35 Contracting obviously there are drawbacks in comparison to Outside IR35 just looking for some General advice

Apologies if posted in the wrong section of this forum

Appreciate your advice

If you search the forum you will find plenty of advice about working multiple contracts whilst working half a day from a ski lodge and blatantly disregarding your clients access policies.

[WTFH]

Hi

The Tax Codes I am on are D1 K559 and D0

Ouch!

You might want to speak to a qualified accountant/tax adviser.

D1 = all your income for that role is taxed at 45%
D0 = all your income for that role is taxed at 40%
K559 = you owe tax from a previous year, or have benefits that need to be taxed

For me, I'm not sure the work/life balance would be worth it on those tax codes for 2 roles.

[eek]

Ouch!

You might want to speak to a qualified accountant/tax adviser.

D1 = all your income for that role is taxed at 45%
D0 = all your income for that role is taxed at 40%
K559 = you owe tax from a previous year, or have benefits that need to be taxed

For me, I'm not sure the work/life balance would be worth it on those tax codes for 2 roles.

On the upside he will get a very hefty refund from HMRC at the end of the year...