Recession, IR35, Switch from ltd - umbrella?

[Hotlatte]

Thanks guys I will do the reading and then get back should I have any more questions..

[Hex]

Good idea. People tend to be more helpful if you come back with more specific questions which obviously show you've been trying to help yourself.

[Lumiere]

Therefore, let me rephrase my question to all is it worth having PI insurance along with PGC membership.

Is it worth having life insurance along with Fitness First membership ?

[TheFaQQer]

Therefore, let me rephrase my question to all is it worth having PI insurance along with PGC membership.

Yes - they provide completely different things.

PCG is a lobbying group for contractors / freelancers. One of the benefits of being a member is that they will cover you for an IR35 investigation. They will not cover you for any payout that you may get clobbered with, but as Mal points out, they are pretty successful in their defences

In terms of your other question about getting agencies to reword / change the contract - some are more open to it than others. I've only had two clauses that I wanted to change where the agency refused to, but they were minor ones rather than anything that would indicate inside / outside IR35. However, if the contract does not reflect the reality, then that won't help your IR35 status one iota.

[Svalbaard]

Sure, work through a limited company - many do it.

Alternatively, I choose to work through an umbrella as it's easy. I make marginally less (i.e. not enough to worry about) than running a Ltd, and my cashflow is much better.

Although I understand that it's not for everyone.

[malvolio]

It's around 15% less. Not exactly trivial...

[nomadd]

Due to the recession and situation with contracts I have decided to close down my Limited company at year-end 09/2010. Specially, when my accountant isn’t fully conversant with IR35 (meaning if I am safe or unsafe).

Make yourself "conversant"...

Nomadd

[malvolio]

Make yourself "conversant"...

Nomadd

Or get a PCG accredited one, who will be conversant?

[nomadd]

Or get a PCG accredited one, who will be conversant?

Well, he's actually talking about an accountant. My experience, even from my own accountant who is very good, is that they don't like to be drawn too much into this. As we all know, IR35's an ill-defined and murky area, and at the end of the day the accountant has to act in a "legal" manner and also protect his own business.

My accountant just simply gives "IR35 advice", but always defers any of his clients who come under investigation immediately to a "tax specialist." In this way, the 5 contractors of his who have been investigated have all had their investigations dropped pretty pronto.

Nomadd

[TheFaQQer]

Or get a PCG accredited one, who will be conversant?

Again, do you expect an accountant to know what the contract says and what your working practices are?

Mine advised me at the start to ensure that I was working outside IR35 whenever possible. Off the back of that genius advice, I read up on IR35, joined CUK, learnt about it and make sure that I work outside it as far as possible.

For something as important as this, surely the best advice is to learn it yourself rather than rely on an accountant - unless the accountant knows how you work and what the contract says.