Inside IR35 and Dormant Status

[jamesbrown]

Yes, essentially. Whether they win is a different matter, but you don’t want to expose yourself to that risk more than necessary.

[Largely Ginny]

You cannot have any transactions and maintain dormant status. Also, it probably isn’t the best time to be linking accountancy costs to the service provision (or not) of YourCo. See the MSC thread. Yes, just keep it open if you’re still intending to use it in future.

I wasn't aware of this. So it seems HMRC are levelling the accusation that some contractors aren't real businesses because they choose accounting solutions that make their lives easier?! I've heard it all now....

Although this is exactly what my OP was about

• accountants using 2-tier payment options for when a contractor is in and out of contract

[jamesbrown]

You cannot have any transactions and maintain dormant status. Also, it probably isn’t the best time to be linking accountancy costs to the service provision (or not) of YourCo. See the MSC thread. Yes, just keep it open if you’re still intending to use it in future.

[Largely Ginny]

I've got a small piece of work I'm doing freelance for a charity that is nearly done & I'm in the running for a 6 month inside IR35 role. Got a second stage interview tomorrow, in fact.

What do people with Ltd companies do when they're inside IR35?

I can reduce my accountancy fees by more than 50% but I have a few regular business expenses going through my lts's account every month like mobile, broadband etc. That's not going to fly if I go dormant and then get investigated I guess.

So presumably the way to go is keep the ltd running, pay the full fees and keep trying to find outside roles whilst in my inside role to justify the expenses. I don't know, what do others on here do?