Re: Thoughts on IR35 Contract

[malvolio]

Just to clear up one small point: tax avoidance is arranging your affairs in such a way as to minimise your tax lilability and is legal, tax evasion is intentionally ignoring the requirement to pay tax on some or all of your income or not declaring that income in the first place and is illegal.

Research what IR35 really means in terms of the contract clauses you need

We turned them up in a post in yesterday by the way. I'll leave you to find it!

[partimer]

old chestnut

To summarise what has already been said. The contract you sign is only an indication. The IR will look at your actual working practise. This means that if you have to do what your manager tells you and have no control over what you do, etc. the IR will see you as a disguised employee.

Normally with so many different view points, you can see that if the IR coming calling you'll more than likely end up at the Special Commissioners. Hence the IR35 insurance will come in handy for the legal costs if nothing else.

Your best bet is to behave like a proper business i.e. multiple customers, the usual professional insurance, etc. Just look at how EDS do it for their body shop employees. Nobody says EDS bodys on site, are caught under IR35 ...

[Denny]

Just to clear up one small point: tax avoidance is arranging your affairs in such a way as to minimise your tax lilability and is legal, tax evasion is intentionally ignoring the requirement to pay tax on some or all of your income or not declaring that income in the first place and is illegal.

That's precisely the point I was making. For example, there's a world of difference between putting £3K each year into a tax free ISA and putting your full whack of pay into a pension scheme and paying yourself £5K a year salary for a project manager's role that would normally attract a £40K a year salary which is evasion. But paying yourself a market rate plus divvies occasionally is probably avoidance provided you do your calculations correctly and your business + wording conditions justify it.

[ratewhore]

Nobody says EDS bodys on site, are caught under IR35 ...

EDS aren't a closed company.

[rtjward]

Re: Thanks for thoughts!

Thanks for everyones thoughts on this, there's been some v.useful and interesting posts. The general theme/view appears to be go Ltd, and even if it is tempting to go through an offshore company as one of my friends does (solely for the money in his pocket it delivers) then.....still go Ltd.

I've never thought to ask on this board, and not sure it's worthy of an individual thread, but although I'm currently being considered for interview for a couple of roles, if anyone on this board is aware of any contracts going or is in fact recruiting themselves then give me a shout. I'm looking for something in the North West and my core skill-set is Project/Programme Mangement / Delivery Management / Implementing best-practice delivery processes, all within a blue-chip environment.

[Mordac]

Hope he han't spent all of Gordon's money yet.