Bye Bye to Brolly??

[TykeMerc]

All previous mud slinging aside......

It's really a matter of personal taste and how much the "Can/Can't be arsed" factor kicks in.

It's true that MyCo Ltd can be more tax efficient if you do it right.
It's true that an Umbrella Co removes the IR35 issue completely.
It's true that MyCo Ltd can (notice the caveat) be more effort and hassle.
It's true that MyCo Ltd is much more of a true "business" relationship with a Director title if that rings your particular bell.
It's true that MyCo Ltd carries with it much more legal responsibility than an Umbrella.
It's true that MyCo Ltd can make it a pain in the nads if you're looking for a new mortgage or other credit especially in the current climate as an Umbrella is an employer with bigger salaried payslips.

As I see it it's a matter of understanding the tradeoffs and making the choice that's right for you. There is no one absolutely right answer that fits all or even many circumstances.

[malvolio]

Oh go and read a dictionary!

If you go through a brolly your personal net income will be lower than if you go ltd. The difference in personal net income is the "saving" that you make by going ltd.

An acceptable use of the word "saving", I feel. Backed up by the OED.

I was querying the assumption that there is a "right" amount of tax. Brolly and LtdCo have different tax regimes hence different due amounts. You don't save anything if the tax is not due, whereas you will pay higher taxation by taking the brolly route. Even as a LtdCo inside IR35, you are still 5% ahead of the game.

So IMHO it's not saving, but a waste: "use carelessly, extravagantly, or to no purpose", or perhaps "fail to make full or good use of".

[NotAllThere]

...So IMHO it's not saving, but a waste:

EAO (you've never had a humble opinion).

Of course there here is no "right amount of tax", unless you're in Primarololand. There is merely the minimum amount of tax you can legally get away with paying according to how you go about arranging your life

On the one hand - it's a saving if you're going from brolly to ltd. On the other it's possibly a waste if you're going from ltd to brolly. But some weird people feel virtuous about handing over more money to the government than they legally need to.

[Torran]

We use SJD to check every new contract is IR35 proof. £125 well spent IMHO.

an accountant to check contract clauses? Would have thought a lawyer would have been more appropriate.

[CiderEagle]

an accountant to check contract clauses? Would have thought a lawyer would have been more appropriate.

I always assumed they got their legal department to do it ... tulip, I'm worried now ...

[Shimano105]

an accountant to check contract clauses? Would have thought a lawyer would have been more appropriate.

Precisely. Everyone tells you there is nothing to worry about - then you realise that they may be giving you bad advice. Where does that leave you now?

Apart from £300 worse off of course.

[DocP]

Ir35

It seems to me that this rule is rather vague. And that there is little you can do to protect yourself against it.

[malvolio]

SJD are PCG Accredited, which means they've have a fairly comprehensive training course on IR35, which means they probably understand the contractual issues quite well.

A lot of people rate Bauer and Cotteril (quite rightly) or QDOS, but there's a good argument to use Lawspeed who will also look properly at the comercial aspects as well as the IR35 ones.

The world is not all about IR35, after all.

[malvolio]

It seems to me that this rule is rather vague. And that there is little you can do to protect yourself against it.

You're new here, aren't you...

[DocP]

New

Yeah, I've been overseas for a while. Just trying to get my head around which approach is best to take