New contractor - Should I start before April 2019?

[taxevo]

I'd suggest understanding more about IR35 and you mortgage options before making a decision.

Don't worry about the date you start contracting from an IR35 perspective, understanding your IR35 status is the priority.

There are mortgage advisers out there who specialise in dealing with contractors so it is certainly worth talking to them to see what options you have before making the jump into contracting.

[washed up contractor]

Hi,

I'm a wannabe contractor. I was originally looking to start after purchasing a house as a permie in ~October 2019, but due to the IR35 changes I have been persuaded to potentially start earlier to get a year in outside of IR35, and buy a house 12 months after starting as a contractor instead.

My question is; should I start before the next tax year, so I can get a full 365 days outside of IR35?

Stay permie.

[northernladuk]

Hi,

I would suggest (like others have) to read up more on IR35 so you are more aware of what it is and how it will impact you moving forward. Beyond IR35 make sure you have everything else planned out. Speak to an accountant or accountants to get their input into the Mortgage situation, it also gives you an idea on what to expect moving forward.

As for timing, jump in when you feel you are ready and are armed with all the facts, oh and of course have a contract to start

Enjoy.

WLB

I'd suggest the OP goes one further than that and goes to speak to the likes of Freelance Financials to understand what mortgages are available and what the lending criteria is. I don't think an accountant will have the details the OP really needs.

[WLB2018]

Hi,

I would suggest (like others have) to read up more on IR35 so you are more aware of what it is and how it will impact you moving forward. Beyond IR35 make sure you have everything else planned out. Speak to an accountant or accountants to get their input into the Mortgage situation, it also gives you an idea on what to expect moving forward.

As for timing, jump in when you feel you are ready and are armed with all the facts, oh and of course have a contract to start

Enjoy.

WLB

[NotAllThere]

Regardless of IR35, I'd say don't wait.

[Hobosapien]

If your reason for going contracting is financially based and you will be requiring a mortgage for the house purchase then you may be better staying permie until the mortgage has been sorted as there is no guarantee of income when contracting, so you may find it more difficult to get a mortgage in contract.

Read up on mortgages for contractors as well as IR35 and don't make a life changing decision until you are sure you know what to expect and it is the right course of action for your circumstances.

[Boomer]

I mean IR35 being introduced in the private sector from April 2020

Being inside or outside of IR35 has nothing to do with the date. Even after April 2020 private and public companies can still use contractors that can be classed as outside of IR35, or as is the case now (pre April 2020), inside. It's an assessment of your contract and working practices, not a status which is flipped by a date.

There are a lot of links out there, it's still a mind bender and pretty vague and subjective, but a good thing to start trying to understand if you plan to go contracting.

Good luck

[northernladuk]

I think you are completely misunderstanding IR35. Have a look on the right, there are a load of links including IR35. Have a read up on those, and use Google to look for more.

Once you've done that we'll be happy to try help on anything specific.

[jamesbrown]

I mean IR35 being introduced in the private sector from April 2020

Er, IR35 has already been introduced in the private sector.

I know what you think you mean, but it's coming out all garbled.

Look for a contract, establish (and evidence) the status of that contract w/r to IR35, decide whether to accept it, and then pay your taxes appropriately. The same applies now, as ten years ago, as after April 2020.

[dankmemes]

What's this 365 days outside IR35 stuff? Who's told you this?

I mean IR35 being introduced in the private sector from April 2020

[northernladuk]

What's this 365 days outside IR35 stuff? Who's told you this?

[dankmemes]

Hi,

I'm a wannabe contractor. I was originally looking to start after purchasing a house as a permie in ~October 2019, but due to the IR35 changes I have been persuaded to potentially start earlier to get a year in outside of IR35, and buy a house 12 months after starting as a contractor instead.

My question is; should I start before the next tax year, so I can get a full 365 days outside of IR35?