So here’s one for you.
I started contracting for the first time - at HMRC, ironically - in Apr 2017. (Had a small-scale consultancy/agency up until then working through MyLtdCo in which I was a 50% shareholder. Mainly one-off large projects and retained clients - no contracting.)
From Apr 2017 to Apr 2018 the HMRC role was designated inside IR35.
The set-up was:
Me > MyLtdCo > Capita > HMRC
Capita paid my wage into MyLtdCo’s account after tax, NI, Employer’s NI and the Apprenticeship Levy were deducted. That payment then went to me without any further deductions. (MyLtdCo continued to have other clients, which is why I kept it on rather than going through an umbrella. I paid myself using dividends for the other work MyLtdCo was billing.)
Then from April 2018 the role went back outside IR35 and I continued to bill as:
Me > MyLtdCo > Capita > HMRC
Obv my take-home increased from then.
And now from Apr 2020 the role is being shoved back inside IR35 but we won’t be able use our limited companies anymore so the set-up will be:
Me > AN Umbrella Co > Capita > HMRC
Oh yes, and before Apr 2017 (before I joined), the HMRC role was outside IR35!
So the history of my HMRC role has been:
Before Apr 2017 (before I joined): Outside IR35
Apr 2017 to Apr 2018: Inside IR35
Apr 2018 to Apr 2020: Outside IR35
Apr 2020 onwards: Inside IR35
I’m mulling over whether to continue come Apr 2020. Worried about retrospective tax-clawback action from HMRC (the taxman). But given the role has been doing the hokey-cokey in terms of IR35, I don’t quite know what to think…
I started contracting for the first time - at HMRC, ironically - in Apr 2017. (Had a small-scale consultancy/agency up until then working through MyLtdCo in which I was a 50% shareholder. Mainly one-off large projects and retained clients - no contracting.)
From Apr 2017 to Apr 2018 the HMRC role was designated inside IR35.
The set-up was:
Me > MyLtdCo > Capita > HMRC
Capita paid my wage into MyLtdCo’s account after tax, NI, Employer’s NI and the Apprenticeship Levy were deducted. That payment then went to me without any further deductions. (MyLtdCo continued to have other clients, which is why I kept it on rather than going through an umbrella. I paid myself using dividends for the other work MyLtdCo was billing.)
Then from April 2018 the role went back outside IR35 and I continued to bill as:
Me > MyLtdCo > Capita > HMRC
Obv my take-home increased from then.
And now from Apr 2020 the role is being shoved back inside IR35 but we won’t be able use our limited companies anymore so the set-up will be:
Me > AN Umbrella Co > Capita > HMRC
Oh yes, and before Apr 2017 (before I joined), the HMRC role was outside IR35!
So the history of my HMRC role has been:
Before Apr 2017 (before I joined): Outside IR35
Apr 2017 to Apr 2018: Inside IR35
Apr 2018 to Apr 2020: Outside IR35
Apr 2020 onwards: Inside IR35
I’m mulling over whether to continue come Apr 2020. Worried about retrospective tax-clawback action from HMRC (the taxman). But given the role has been doing the hokey-cokey in terms of IR35, I don’t quite know what to think…
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