Reply to: IPSE Membership For New Contract

[jamesbrown]

Why can't you open a new ltd?

There is no ban on opening/directing a new company in any circs, assuming you’re not banned as a director but, IF you closed the last one and took a capital distribution via MVL, THEN you will be liable to a reclassification of that distribution to a dividend distribution IF you fail the conditions in the TAAR, notably that it is less than two years since the last capital distribution was received and the new company is engaged in the same or a similar trade or activity. In other words, it might cost you a lot.

[psychocandy]

Ah glad I found this thread. NLUK will be proud of me using the search function....
Im about to start a new gig Outside and I was wondering too.....

I remember years ago having a random VAT inspection. It would have been a right PITA (they wanted to visit me at home for a "few days" and didnt care it meant lost billing time) but the guy that IPSE sorted for me dealt with it all to be fair.

[psychocandy]

So you only closed your Ltd last year? Just checking that you're aware, if you're taking an outside contract, that you can't open a new Ltd just yet anyway??

Why can't you open a new ltd?

[jamesbrown]

Thanks for all the replies. I will rejoin prior to starting my new contract.

If you want a £50 discount for Plus membership, use this link ():

https://www.ipse.co.uk/joinme/071513/

Full disclosure, I also get an Amazon voucher for £50. That said, it might not work if you were a member previously.

/spam.

[Coolshot]

Thanks for all the replies. I will rejoin prior to starting my new contract.

[PerfectStorm]

I was subject to a non-IR35 HMRC investigation and it was very useful to have. Took a couple months and they managed it through.

[northernladuk]

Yes I will do before I start. I don't plan to take any salary till next tax year and only minimum dividends to cover the mortgage payments.

Good stuff

[Coolshot]

Only if they used MVL

Don't forget to get yourself an accountant and speak to them. If you've got income this year already you'll need to change your pay levels, or even not pay yourself at all for the rest of the year if you are over the tax threshold.

Yes I will do before I start. I don't plan to take any salary till next tax year and only minimum dividends to cover the mortgage payments.

[northernladuk]

Don't forget to get yourself an accountant and speak to them. If you've got income this year already you'll need to change your pay levels, or even not pay yourself at all for the rest of the year if you are over the tax threshold.

[Coolshot]

Only if they used MVL

I didn't have much of a warchest so just took a final dividend.

[pr1]

So you only closed your Ltd last year? Just checking that you're aware, if you're taking an outside contract, that you can't open a new Ltd just yet anyway??

Only if they used MVL

[silent bob]

Hello,
Since April last year I've been working on a FTC but recently been offered a contract outside IR35 which I plan to take up. Now that the fee payer is responsible for the SDS and taxes if they get it wrong is it still worth being a member of the IPSE? I was a member for 10 years but didn't renew last year after closing my Ltd company.

So you only closed your Ltd last year? Just checking that you're aware, if you're taking an outside contract, that you can't open a new Ltd just yet anyway??

[northernladuk]

Under the new rules is it still my responsibility to defend a challenge/investigation by HMRC? If so then I'll take out a new membership.
I note they also cover jury service and a few other things so may be worth it anyway.

They say no but we don't really know for sure as it hasn't really happened yet. HMRC have said they will still investigate gigs before April for up to 6 years prior so the insurance will help retrospectively as well. Just have to work back from before your FTC and see what your possible exposure might be.

Obviously, as mentioned, there are general tax investigations that will continue as normal.

[Coolshot]

Under the new rules is it still my responsibility to defend a challenge/investigation by HMRC? If so then I'll take out a new membership.
I note they also cover jury service and a few other things so may be worth it anyway.

[northernladuk]

It also covers you for general tax problems not just IR35. Just because the client issues the SDS it doesn't mean you aren't going to get tax investigations. And if you are outside then there are no taxes for the fee payer to be responsible for. You still have legal responsibility for your LTD co's taxes.

As Mal pointed out there is jury service, business interruption and other elements.

Just got to read the blurb and see if it's for you. There is no right or wrong answer here and depending on your attitude to risk.