Reply to: Deep Thought IR35 calculator

[Bluebird]

According to this http://calculator.contractoruk.com/

My income would drop to 50% net

I am currently getting about 68% through a brolly.

I am not sure what I will be getting through my new Ltd but it better be somewhere nearer the later figure.

Anyone know what the likely figures would be through a ltd inside and outside assuming a 50k annual income without expenses for ease of comparison?

I usually get about 82% take home, although I do put some expenses through the company - roughtly about £400 per month [ milage etc ]

[Maxamus]

I am as above apart from the fact I can't work from home as I have no link to their secure network and on occasion I need to visit client’s desks.

Dont worry if you cant work from home, not everyone can. Try to seperate yourself by other means from the perm workforce. Like using your own laptop or when communicating with people (bosses, managers etc) use your companies headed paper for letters......or compliments slip.

Theres alot of small things you can do which are minimum effort.

[Spacecadet]

no
see above post

can't argue was your post

incidentally - these are handy as an IT contractor working on site:
http://www.amazon.co.uk/Vitrex-30-16.../dp/B0001GRVS2

[Maxamus]

pension stuff

no
see above post

[Maxamus]

Ppe ?

Personal Protective Equipment

As in high visibility jackets/vests/hard hat/site boots etc.
Wount apply to you IT people but to highway engineers (like me) these are fundemental for site work

[gingerjedi]

According to this http://calculator.contractoruk.com/

My income would drop to 50% net

I am currently getting about 68% through a brolly.

I am not sure what I will be getting through my new Ltd but it better be somewhere nearer the later figure.

Anyone know what the likely figures would be through a ltd inside and outside assuming a 50k annual income without expenses for ease of comparison?

[mrdavies]

thing is in a real investigation they look at your contract, chuck it away and they see how you have actually been working

..

I am on a project that has a crazy turnover of people, in the event of an investigation one day WHO would they speak to to find out your working practices? Surely they don't take your word for it.... faces change around here from week to week. Just wondering thats all....

[gingerjedi]

If you get investigated then the contract would not be enough even if it deems you outside of IR35.

To be trully seen as being outside of IR35 would be to show:

- Flexible working. You work the hours you want to work. You dont turn up at a set frequency day in, day out.
- Working from home
- Using your own car for site vists rather than a company/pool car
- use of your own mobile phone
- using and providing your own PPE
- not using the set standard (if there is one) and instead using your own.
- not turning upto team briefs/social events etc
- not wearing a uniform
- anything else which creates financial risk for you as a company

etc etc etc...........

I am as above apart from the fact I can't work from home as I have no link to their secure network and on occasion I need to visit client’s desks.

[Spacecadet]

Ppe ?

pension stuff

[Bluebird]

Ppe ?

[Money Money Money]

If you get investigated then the contract would not be enough even if it deems you outside of IR35.

To be trully seen as being outside of IR35 would be to show:

- Flexible working. You work the hours you want to work. You dont turn up at a set frequency day in, day out.
- Working from home
- Using your own car for site vists rather than a company/pool car
- use of your own mobile phone
- using and providing your own PPE
- not using the set standard (if there is one) and instead using your own.
- not turning upto team briefs/social events etc
- not wearing a uniform
- anything else which creates financial risk for you as a company

etc etc etc...........

Using all your own tools!

[jh0711]

Hi Maxamus - that makes me feel better - it suddenly seemed that umbrella companies could not claim expenses but set up a ltd get your contract worded correctly and you have no worries

I have a funny feeling that come April composties will be dead, Ir35 will still live and brollies will survive......

.....for now.

probably

[Maxamus]

If you get investigated then the contract would not be enough even if it deems you outside of IR35.

To be trully seen as being outside of IR35 would be to show:

- Flexible working. You work the hours you want to work. You dont turn up at a set frequency day in, day out.
- Working from home
- Using your own car for site vists rather than a company/pool car
- use of your own mobile phone
- using and providing your own PPE
- not using the set standard (if there is one) and instead using your own.
- not turning upto team briefs/social events etc
- not wearing a uniform
- anything else which creates financial risk for you as a company

etc etc etc...........

[jh0711]

sounds like the best option is Ltd then - get your contract worded to be outside of IR35 regardless of what reality is and then laugh all the way to the bank!

[pisces]

thing is in a real investigation they look at your contract, chuck it away and they see how you have actually been working

if you show any sign of being an employee (having to turn up for work at a certain time, being monitored on breaks, etc etc etc etc etc etc etc betc etc etc etc etc etc ect etc )

then you are caught - the reality of the situation is just that - what is real and not what is written in a contract

example I saw a contract the other day from a rec agency which had been quite obviously written to seem to be outside of IR35 - (had all the usual clauses about having to repair any work in your own time and being able to send in a subsitiute not being controlled by the end client etc etc) but the actual job role was on a telephone helpdesk - which quite clearly does not fit the above description as the role did involve set times of work set breaks and also montiored levels of work and performance.

probably

When they take you to court they lose more 99% of the time anyway.

Recently a council worker who even had holiday pay during his contract won his court case.