Ltd company on new contract, should I or not?

[guicane]

Hi everyone, first post here.

I had a look around and saw some posts that are similar but not quite what I was looking for and by what I could see this will probably be very straight forward to most of you so I'm hoping you can help.

I have just started contract at the beginning of March and that was initially a 1 month contract so I am working through and Umbrella company until now. There are some projects going on so the manager here offered me a 6 month extension to my contract for a higher rate. I obviously agreed but was soon contacted by the Umbrella company offering the option of opening my own limited company saying I would get more money which made very happy obviously.

I got this contract through and agency and so far so good, they have been very helpful and when I first was offered the gig I signed an opt out agreement, but that was when the initial 1 month contract was agreed.

I now am aware of the IR35 deal and am confused whether I can claim that I fall outside of it.

I am working here helping the department run as they are short of staff and also to deliver a few projects before the 6 months period. I'm using their devices and am required to attend the office mon-fri 9-5.

I do want to move on to another contract somewhere else at the end of the 6 months but am worried if I go the limited company route the HMRC will come and get me as they'll be thinking I'm not legit.

Can you advise at all?

Very much appreciated! Thank you,

Gui

[Project Monkey]

An operator will be available shortly to answer your query.

[northernladuk]

Read the guides to the right and do a little research to avoid a mauling. There is an IR35 guide as well as newbie guides plus much more valuable reading. You are on your own running your own business as a LTD so there is no one to hold your hand any more. Time to step up and grow some. Have a look at the link below that is stickied in the accounting section as well.

http://forums.contractoruk.com/accou...-business.html

When you have done some basic research and show some level of understanding I am sure people will be happy to help.

[MyUserName]

Have a look at how you and equvilant permies act in terms of procedures you follow etc.

If there is no real difference then you are probably at risk of IR35 biting you. Remember that is it not a box ticking exercise HMRC will consider all of the evidence and then try to twist it so they can harpoon you as deeply as possible.

[LisaContractorUmbrella]

An operator will be available shortly to answer your query.

[LisaContractorUmbrella]

Hi everyone, first post here.

I had a look around and saw some posts that are similar but not quite what I was looking for and by what I could see this will probably be very straight forward to most of you so I'm hoping you can help.

I have just started contract at the beginning of March and that was initially a 1 month contract so I am working through and Umbrella company until now. There are some projects going on so the manager here offered me a 6 month extension to my contract for a higher rate. I obviously agreed but was soon contacted by the Umbrella company offering the option of opening my own limited company saying I would get more money which made very happy obviously.

I got this contract through and agency and so far so good, they have been very helpful and when I first was offered the gig I signed an opt out agreement, but that was when the initial 1 month contract was agreed.

I now am aware of the IR35 deal and am confused whether I can claim that I fall outside of it.

I am working here helping the department run as they are short of staff and also to deliver a few projects before the 6 months period. I'm using their devices and am required to attend the office mon-fri 9-5.

I do want to move on to another contract somewhere else at the end of the 6 months but am worried if I go the limited company route the HMRC will come and get me as they'll be thinking I'm not legit.

Can you advise at all?

Very much appreciated! Thank you,

Gui

Are you under supervision? Are you given work to do (I would guess yes from your post) and does the client exert control over your movements (with a requirement for 9 to 5 I would say yes again)

If you were not able to work would you be able to send someone else in your stead to do the work for you - would you need permission from the client and do you actually know someone who could do what you do.

Is the client obliged to give you a certain number of hours/days work per week and are you obliged to accept it?

Those are the 3 main considerations for IR35 but should you also consider if and how you have integrated into the workforce e.g. are you doing the same jobs as permanent members of staff, do you use company facilities etc etc

HTH

[guicane]

Thanks so much for all your replies, even the rude and impatient ones!

I know it gets annoying but I feel each case is a case and this one is probably a very straight forward one.

Given your answers it does indeed look like I fall under IR35 which is a bit of a bummer but gives me time to specialise more in an specific area in order to offer my services in a proper contract basis where I can provide my services through a ltd company.

Sticking to the Umbrella for now, unfortunately...

Thank you!

Gui