inevitable question

[tractor]

...

Thanks,

I am a total ltd newbie so I had my contract reviewed by a number of accountants and according to them it is caught by IR35.

As I don't really want to operate inside IR35 for 5% more income than umbrella perhaps using brolly is the sensible option.

Accountants may have an understanding of IR35 from an operational point of view i.e calculating the tax, but legal professionals should be consulted when determining IR35 status.

You should have your contract reviewed by QDOS or one of the other professionals. If you check the links on the right, you will find one easily enough.

You wouldn't ask your solicitor to file your accounts, would you? So why are you taking legal advice from an accountant?

[la7ush]

How you proceed depends entirely on why you think the contract is inside. If it is because a professional review (or you are an experienced enough contractor to know) says so, then you would be a fool to risk it.

If you think it is inside because your agent/accountant/wife/hamster said it was, then you probably should have the contract reviewed professionally, then make your decision. It doesn't cost a great deal and you will have the security of professional advice.

Thanks,

I am a total ltd newbie so I had my contract reviewed by a number of accountants and according to them it is caught by IR35.

As I don't really want to operate inside IR35 for 5% more income than umbrella perhaps using brolly is the sensible option.

[tractor]

...

If any element of the contract places you outside out of the big 3 factors you could give it a go... with insurance!

Exactly, following is the advice from Accountax elsewhere on this site...

• Is there a requirement for the worker's personal service?
• Is there a sufficient degree of control over the worker?
• Are the mutual obligations of the contract consistent with employment?

Why are these three areas so important? Because if the answer to any of these questions is 'no', the contract cannot be an employment, whatever other terms it may contain.

[tractor]

....

How you proceed depends entirely on why you think the contract is inside. If it is because a professional review (or you are an experienced enough contractor to know) says so, then you would be a fool to risk it.

If you think it is inside because your agent/accountant/wife/hamster said it was, then you probably should have the contract reviewed professionally, then make your decision. It doesn't cost a great deal and you will have the security of professional advice.

[la7ush]

In the terms you've described, it's evasion. If you're caught, you'll regret it, because you'll be on the hook for a lot more than the tax due. By all means, seek professional advice on whether your working practices can be positioned outside but, if you've done that already, bend over and wait...

Also, why is this an inevitable question? It's a pretty stupid question IMHO...

Thanks for sharing your thoughts!

[Retro]

I get you point. Part of me wants to take the risk and give it a go and the other one wants to play it safe and use brolly.

If it's an 8 month term, avoid all complications and use a brolly.

If you think you might want it to go on for a lot longer, consider a limited company.

[jamesbrown]

Should I operate as outside IR35 even though contract is inside IR35?

In the terms you've described, it's evasion. If you're caught, you'll regret it, because you'll be on the hook for a lot more than the tax due. By all means, seek professional advice on whether your working practices can be positioned outside but, if you've done that already, bend over and wait...

Also, why is this an inevitable question? It's a pretty stupid question IMHO...

[la7ush]

I wouldn't recommend that action if caught by ir35.

You are running the risk of being investigated by HMRC and then potentially having a large amount of tax and ni to pay along with penalties and interest were you to be found out.

I get you point. Part of me wants to take the risk and give it a go and the other one wants to play it safe and use brolly.

[la7ush]

If any element of the contract places you outside out of the big 3 factors you could give it a go... with insurance!

Thanks,

What insurance do you have in mind?

Sorry I am a total ltd noob.

[Kenny@MyAccountantFriend]

I wouldn't recommend that action if caught by ir35.

You are running the risk of being investigated by HMRC and then potentially having a large amount of tax and ni to pay along with penalties and interest were you to be found out.

[PerfectStorm]

Should I operate as outside IR35 even though contract is inside IR35? This is for short term contract (approx. 8 months) and then going back to perm.

If any element of the contract places you outside out of the big 3 factors you could give it a go... with insurance!

[la7ush]

Should I operate as outside IR35 even though contract is inside IR35? This is for short term contract (approx. 8 months) and then going back to perm.