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Limited Company and contracts that include both in and out of IR35

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    Limited Company and contracts that include both in and out of IR35

    I've read all the guides but can't see the answer to this one so far. As a contract social worker I realise most if not all of my social work jobs will be inside IR35, apart from anything else you have to turn up where and when they want apart from minimal flexi time. I have 3questions:

    1) I am about to take on project work in which I will be given a certain amount of work to get through in a certain time. (3 months). I will be able to control the times and places when I work apart from being available for a few project meetings and to meet the needs of the job. e.g. I can work at home or can hotdesk in their various premises. I have to use their laptop for security reasons. However all social work includes something called supervision i.e. regular meetings with your line manager to supervise your professional practice, regardless of how senior you are this is the tradition of social work and the term supervision comes from psychoanalysis not the usual meaning. I will be having meetings with my immediate superior about once a week to discuss individual cases. They also would not want me to substitute someone else to do the work as it is not just a case of having the right certificates, they have given me the gig because I have a certain background. Is this likely to put me irrevocably inside IR35? I am hourly paid, asked my agent about a day rate instead but he says only very senior people get that, mind you he doesnt seem to know much as a while back he did not know the difference between limited and umbrella.

    2. As well as doing the social work gigs I may be doing some work for my husband's company, odds and sods now and then. If this work, and possibly the project work above, falls outside IR 35 are there any advantages in setting up a limited co. ( I am umbrella at the moment) apart from the flat rate VAT scheme and 5%, over and above what I can already laim under my umbrella working inside IR35? Or can I also claim other business expenses, phone etc if I am doing some work outside IR35?.

    3. I did some work earlier this year for my husband's start up, for which I didnt get paid. as the business wasnt bringing any money in at that point. I recorded all this in timesheets plus there was a fair bit of mileage, all well recorded. If I went limited can I now invoice his company for this work? I would limit it to under the NI threshold per week worked.

    Sorry if this is a bit long and thanks in advance for any help.

    #2
    IR35 is judged on a per contract basis; you can have one in and one out at the same time. However none of your scenarios look like IR35 fails to me: I suggest you get reading the guide over there ---> and the Guide to Freelancing at www.ppcg.org.uk, which is more wide-ranging and probably a lot more relevant and useful than one focused on the standard BoS IT contractor lilke us lot.

    As for using a Limited Company, it's a useful way to manage a variable income and offers assorted other protections (which will become clearer the more you read).

    And what ever you do, do not base your life around IR35. It's important you understand it, but beyond that you're there to run a business, not pay the taxman.
    Blog? What blog...?

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      #3
      Thanks

      Thank you Malvolio, v helpful.I will read the links. I amtrying to work out whether, if at least some of my contracts are outside, I can claim things that are relevant to all contracts, like a phone contract?

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        #4
        Originally posted by socialworker View Post
        Thank you Malvolio, v helpful.I will read the links. I amtrying to work out whether, if at least some of my contracts are outside, I can claim things that are relevant to all contracts, like a phone contract?
        Read the guides.

        Mobiles are fully claimable provided the contract is in the compnay name and there's then no BIK attached for personal use. Otherwise, expenses follow two golden, inviolable rules: they must be wholly and exclusively for business use, and you must have spent the money. Don't let anyone persuade you otherwise until you really know what you're doing.

        It's a big challenge, you have no idea how much you don't know. But get it right an you'll never want a boss again.
        Blog? What blog...?

        Comment


          #5
          Don't try and decide for yourself, a lot hangs in the balance. Get a professional to look over your contracts/situation for you. QDOS, Baur Cotteral offer a service to check for you, accountants like SJD do it now. £95 for peace of mind and correct accounting is very very cheap.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            Originally posted by northernladuk View Post
            Don't try and decide for yourself, a lot hangs in the balance. Get a professional to look over your contracts/situation for you. QDOS, Baur Cotteral offer a service to check for you, accountants like SJD do it now. £95 for peace of mind and correct accounting is very very cheap.
            Cheers, I was thinking of going to SJD if I go limited as I use their sister co. Contractor Umbrella and have been very pleased with them.

            Comment

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