Only 3 month's IT Contract through Limited Comapny

[Bluebird]

No - IR35 is designed to stop disguised employees avoiding paying PAYE and NI. Whether this is a permie going contract or the other way round is neither here nor there - in fact I would think this is more likely to be IR35 caught, since there is not much argument to be had for proving that this isn't just a three month trial period.

IR35 was introduced to stop the permie-contract flow.

It's not quite the same the other way around, somebody who is outside of IR35 in contract & working practices CAN become an employee, and thus recieve the benefits of employment, but pay the price by paying PAYE.

Just because your employment status changes from Contract to Permanent Employment DOESN'T put you inside IR35 for the contract element of you assignment.

[TheFaQQer]

If I read this right IR35 is irrelevant. He's going from contract to Permie not the other way around, which is what IR35 is aimed. So providing the contract itself is IR35 friendly then there should be no issue.

for 2 and 3 talk to one of the accountants on here and see what can be done. Won't do you any harm to keep the ltd running for a while anyway and may come in handy if you go contracting again in the future or if the permie gig doesnt work out.

No - IR35 is designed to stop disguised employees avoiding paying PAYE and NI. Whether this is a permie going contract or the other way round is neither here nor there - in fact I would think this is more likely to be IR35 caught, since there is not much argument to be had for proving that this isn't just a three month trial period.

[DaveB]

Hi All,

Due to lack of knowledge I
1. Registered my own limited company
2. Started 3 months IT contact. It's already 1 month in this contract.

Now I would be working with the same client as a Perm employee just after my contract finishes. So I will be on payroll. In brief, my company would do trading only for 3 months.

Please let me know:
1. Do I fall into IR35?
2. How do I close my company after 3 months?
3. Can I hire an accountant just for 3 months to do my all of the paperwork etc?


Any help would be appriciated.

thanks in advance

If I read this right IR35 is irrelevant. He's going from contract to Permie not the other way around, which is what IR35 is aimed. So providing the contract itself is IR35 friendly then there should be no issue.

for 2 and 3 talk to one of the accountants on here and see what can be done. Won't do you any harm to keep the ltd running for a while anyway and may come in handy if you go contracting again in the future or if the permie gig doesnt work out.

[Bluebird]

If a company is "parked" in this way, would it still be necessary to complete regular paperwork, pay the accountants, etc.?

think you can send in a "nil" return to Companies House which wouldn't need an accountant, however you still need to pay CH to file.

Check out their website for more info...

[Kess]

It would be worth keeping the company going, after all, if you decide that the permie job isn't for you, then you have the company ready to start contracting again. Saves the hassle of going through set up costs again.

If a company is "parked" in this way, would it still be necessary to complete regular paperwork, pay the accountants, etc.?

[BA to the Stars]

It would be worth keeping the company going, after all, if you decide that the permie job isn't for you, then you have the company ready to start contracting again. Saves the hassle of going through set up costs again.

[M@H]

1. If the perm job is the same...then I would have thought it would have been hard to argue that is not caught. Real situation overrides contracts innit.

Indeed:

Whether a worker is an employee or self-employed depends on a range of factors, but the final opinion is not reached by adding up the number of factors pointing towards employment and comparing that result with the number pointing towards self-employment. The courts have specifically rejected that approach.

It is a matter of evaluation of the overall effect, which is not necessarily the same as the sum total of all the individual details. Not all details are of equal weight or importance in any given situation. The details may also vary in importance from one situation to another.

When the detailed facts have been established, the right approach is to stand back and look at the picture as a whole, to see if the overall effect is that of a person working in a self-employed capacity or a person working as an employee in somebody else's business. If the evidence is evenly balanced, the intention of the parties may then decide the issue..

[max]

Hi All,

Due to lack of knowledge I
1. Registered my own limited company
2. Started 3 months IT contact. It's already 1 month in this contract.

Now I would be working with the same client as a Perm employee just after my contract finishes. So I will be on payroll. In brief, my company would do trading only for 3 months.

Please let me know:
1. Do I fall into IR35?
2. How do I close my company after 3 months?
3. Can I hire an accountant just for 3 months to do my all of the paperwork etc?


Any help would be appriciated.

thanks in advance

1. If the perm job is the same...then I would have thought it would have been hard to argue that is not caught. Real situation overrides contracts innit.

But the amount of money involved would be small, as only for 3 months.

3. Accountant's would normally charge for the company year spread over 12 months.

[rootsnall]

1. For 3 months only I'd just declare yourself outside IR35
2 + 3. Ring around a few of the regularly mentioned accountants on here and ask for a price for sorting the lot out, who handled you initial setup ? I'd of thought they'll want 500-700 quid but you may get a better deal, most of us pay monthly ( 50-70 a month ) and my accountant used to charge 100 quid for closing a Co down.

[Cowboy Bob]

Hi All,

Due to lack of knowledge I
1. Registered my own limited company
2. Started 3 months IT contact. It's already 1 month in this contract.

Now I would be working with the same client as a Perm employee just after my contract finishes. So I will be on payroll. In brief, my company would do trading only for 3 months.

Please let me know:
1. Do I fall into IR35?
2. How do I close my company after 3 months?
3. Can I hire an accountant just for 3 months to do my all of the paperwork etc?


Any help would be appriciated.

thanks in advance

1) That depends on your contract and working conditions - it has nothing to do with duration of contract (you did get your contract looked over by a contract lawyer didn't you?)
2) You can't - <removed>
3) Yes, but be aware that you will still have to file end of year accounts.

[vjverma]

Hi All,

Due to lack of knowledge I
1. Registered my own limited company
2. Started 3 months IT contact. It's already 1 month in this contract.

Now I would be working with the same client as a Perm employee just after my contract finishes. So I will be on payroll. In brief, my company would do trading only for 3 months.

Please let me know:
1. Do I fall into IR35?
2. How do I close my company after 3 months?
3. Can I hire an accountant just for 3 months to do my all of the paperwork etc?


Any help would be appriciated.

thanks in advance