Continue with working through Limited Company inside ir35

[Sn3md]

I do locum work for the NHS but also a little bit of private ad hoc work as well.

My question is.. can I just continue to work through my Limited Company and be taxed PAYE?

I don't understand the benefit of umbrellas when:
A) they charge a weekly fee (which would be more than my accountant fee)
B) you can not claim expenses

My agency say they would let me continue working through my Limited Company but I would be taxed as an employee.

Obviously I can no longer claim business expenses through my company.. which is a whole other issue.

But why would an umbrella be so much better than being taxed at source for your Limited Company or being an employee of the agency?

[northernladuk]

Plenty of threads now around about umbrella vs PAYE....

Try having a dig around using the search method as detailed here. Limit it to the IR35 section and you should be golden.

http://forums.contractoruk.com/welco...uk-forums.html

[eek]

See http://forums.contractoruk.com/publi...ml#post2360157 and the post underneath it.

The reason for using an umbrella boils down to ease of use (both for you and especially the agency) and pensions

[Aceofgas]

I do locum work for the NHS but also a little bit of private ad hoc work as well.

My question is.. can I just continue to work through my Limited Company and be taxed PAYE?

I don't understand the benefit of umbrellas when:
A) they charge a weekly fee (which would be more than my accountant fee)
B) you can not claim expenses

My agency say they would let me continue working through my Limited Company but I would be taxed as an employee.

Obviously I can no longer claim business expenses through my company.. which is a whole other issue.

But why would an umbrella be so much better than being taxed at source for your Limited Company or being an employee of the agency?

You probably can continue using your company for private ad hoc work. With this stream you can still account for expenses.
The NHS is going PAYE and using your company for these payments is up to you. Beyond this I have evidence of an NHS Trust refusing to accept any candidates still employed by a PSC and also refusing to pay any fees into a business bank account.
Using an umbrella may be a requirement by some agencies. You work through an umbrella or you do not get any work if you don't.
The next point of contention is going to be various arguments about employers NI by whoever classifies as the employer.

[Sn3md]

Thanks for your replies. I think I'm going to continue working through my company for as long as they let me. I mean, I'm pretty much screwed either way!

[Scrag Meister]

This is the situation that Mrs Scrag Meister finds herself in, being a locum for a council.

Her agency haven't said anything will change, so as long as her accountants process it all in line with PAYE then there shouldn't be any issue?

I suggested this was the case to just declare yourself inside IR35 and take the hit, or get a rate rise if possible.

So grey and unclear, and such a short time until it all comes into effect.

[LondonManc]

Thanks for your replies. I think I'm going to continue working through my company for as long as they let me. I mean, I'm pretty much screwed either way!

Yep, all because someone saw contractor day rates and got jealous, without thinking about the risks that go with it.

[DotasScandal]

Yep, all because someone saw contractor day rates and got jealous, without thinking about the risks that go with it.

Britain practically invented politics of envy.

[Qdos Contractor]

This is the situation that Mrs Scrag Meister finds herself in, being a locum for a council.

Her agency haven't said anything will change, so as long as her accountants process it all in line with PAYE then there shouldn't be any issue?

I suggested this was the case to just declare yourself inside IR35 and take the hit, or get a rate rise if possible.

So grey and unclear, and such a short time until it all comes into effect.

No - the deductions have to be made by the fee payer (agency). Unless the legislation is adjusted before it's released, you won't be able to simply operate inside IR35 as you could do pre-6th April.

[LondonManc]

Britain practically invented politics of envy.

Correct. We don't exactly champion our champions. No wonder as soon as the brighter people get successful they generally want to cash in and fade out of the limelight.