Originally posted by eek
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Reply to: IR35 - expenses and insurance
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Previously on "IR35 - expenses and insurance"
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Originally posted by eek View PostWhere are you getting that 95% figure from? There is no mention of expenses in the public sector consultation document as IR35 already means no expenses allowed
There is a whole section on the 5% allowance and question 6 is "How would accounting for the 5% allowance work in practice?"
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Originally posted by newbieITContractor2015 View PostThanks, my main contract is a public sector contract. I'll keep a close eye on the ir35 for next April.
What do you think of these tips?]
I need to sort out some business cards and make sure I have my company name on my ID badge
Not sure my client would go for adding my company email to my account
It does seem that ultimately I'm stuck, umbrella companies don't seem great and a permanent role for isn't available
That checklist is OK but many of them you can't do, some more are such minor points it's hardly worth it and so on. It will suit a tick box permatractor that doesn't really understand what they are doing I guess. What is better is to read up what IR35 actually is and start thinking like a business. Most of those will be second nature if you do. You will also know from your reading what the 3 main pillars are and know that getting those right is most of the battle. For example, the business cards is pretty much a waste of time for an IR35 defence. I wouldn't be going out to get business cards based on IR35 alone.Last edited by Contractor UK; 28 October 2016, 08:27.
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Thanks, my main contract is a public sector contract. I'll keep a close eye on the ir35 for next April.
What do you think of these tips?
I need to sort out some business cards and make sure I have my company name on my ID badge
Not sure my client would go for adding my company email to my account
It does seem that ultimately I'm stuck, umbrella companies don't seem great and a permanent role for isn't availableLast edited by Contractor UK; 28 October 2016, 08:27.
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Originally posted by malvolio View PostTwo casual on demand contracts aren't much evidence but they will certainly help. From next April though he will be paying PAYE and NICs on 95% of his gross income so IR35 is an irrelevance anyway.
There are many other threats though. IPSE+ membership will be his best investment in the future.
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Originally posted by northernladuk View PostI can't see why it is. IR35 is per contract so he can still be inside for 95% of his income and outside for 5%. I think it's a red herring. He should be talking about the PS gig and it's IR35 status.
That said it certainly helps having multiple pieces of work as per the old BET's but they are defunct now.
There are many other threats though. IPSE+ membership will be his best investment in the future.
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Originally posted by GillsMan View PostIs the 95% of turnover coming from the Public Sector significant? I ask because my old accountant used to ask me to notify him if my turnover was more than 50% derived from the public sector. It never was so I didn't question him on it, but that might be a factor? I did a quick Google but couldn't find anything on it.
That said it certainly helps having multiple pieces of work as per the old BET's but they are defunct now.
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Is the 95% of turnover coming from the Public Sector significant? I ask because my old accountant used to ask me to notify him if my turnover was more than 50% derived from the public sector. It never was so I didn't question him on it, but that might be a factor? I did a quick Google but couldn't find anything on it.
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Originally posted by newbieITContractor2015 View Post
Currently I process my expenses (i.e. travel, subsistence, etc) as if I'm outside of IR35, but I'm not sure if push came to shove the HMRC would agree. If they did disagree, what's the outcome, paying the tax that would have been payable and a fine?
As for fine I'm not sure but they'll probably chase initially for £100 late payment plus interest on the gap.
But your post suggests you'll be OK anyway. Just make sure your working practises are correct, and gather evidence of that as you go.
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You've had it checked and you are outside IR35. You've gone to other lengths to make sure you are outside so why are you overly worried what HMRC will do? It's a much better position than 90% of other contractors. Get TLC35 or IPSE+ to just top it off and worry no more.
The thing you should be more worried about is the changes coming to PS contracting come April IMO.
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IR35 - expenses and insurance
Hello,
I have my own ltd company with 3 clients, 95% of my income comes through a public sector client with whom I have a contract, the other 2 clients I have no contract but do ad hoc work for. I've had QDOS check the public sector contract for IR35 status and they deemed it to be outside.
In my working practices I only use a client laptop as the customer does not allow 3rd party devices to access their systems, for calls I use my ltd company phone. I have a company website, insurance and all the other bits a larger limited company has, apart from I'm the sole employee. I work between home and the client site.
Currently I process my expenses (i.e. travel, subsistence, etc) as if I'm outside of IR35, but I'm not sure if push came to shove the HMRC would agree. If they did disagree, what's the outcome, paying the tax that would have been payable and a fine?
What's the recommended approach, I'm sure there must be lots of people who run their own limited companies whilst being the single employee?
Thanks in advanceTags: None
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