Reply to: Limited & IR35

[BA to the Stars]

One final question, if I take a contract in London (I live in the north west) can I legally submit the cost of the accommodation (serviced apartment or hotel) as an expense?

Yes you can as it is a cost incured in the undertaking of your business.

The first timers guide is useful and there are also numerous threads (including links) regarding expenses on this site.

If you visit the SJD Accountancy website they also produce guides

[malvolio]

Bloody hell.....

The level of aggression on these boards is high. Like nothing I have ever seen.

The only thing I am saying is it seems to me that if u get caught by ir35 then it somewhat removes the money benefit of being a contractor. I'm not after a easy fast payday but I think considering the risks you would expect to be better off as a contractor. Sorry if my understanding is wrong. I came here to be put right but some of you lot like to put the boot in don't you.

Thanks to everyone who tried to help.

Welcome to the real world of contracting. Nobody said it was easy! Equally, if you're put off by the robust attitudes of the denizens of this board, and can't se that IR35 is not something to be feared (and quite often something not to be paid), then you are probably better off not going freelance. You will make more money and you will have a better work/life balance and you will be much more in control of your own destiny - but you really do have to work at it.

[dx4100]

What did you think contracting was going to be? An easy route to guaranteed earnings that are higher than your permie wage?

The risks are high, and our tax liability has the potential to be much higher than your average permie. That is why we get higher pay.

Another bloody permie thinking contracting is all about a quick easy buck....

Bloody hell.....

The level of aggression on these boards is high. Like nothing I have ever seen.

The only thing I am saying is it seems to me that if u get caught by ir35 then it somewhat removes the money benefit of being a contractor. I'm not after a easy fast payday but I think considering the risks you would expect to be better off as a contractor. Sorry if my understanding is wrong. I came here to be put right but some of you lot like to put the boot in don't you.

Thanks to everyone who tried to help.

[Ardesco]

The whole thing just sounds like madness.....

I was really interested in giving the contractor game a go but right now im just being scared away from it. If the IR aren’t making things clear what hope do you have of doing things properly. To make us pay employers NI contributions is madness.

The risks involved with contracting, aka finding the next job etc plus the tax issues makes it pointless. If I get caught by IR35 I am not that much better off.

I suppose the IR are getting what they want....but surely a healthy contractor market is overall better for the economy ?

One final question, if I take a contract in London (I live in the north west) can I legally submit the cost of the accommodation (serviced apartment or hotel) as an expense?

What did you think contracting was going to be? An easy route to guaranteed earnings that are higher than your permie wage?

The risks are high, and our tax liability has the potential to be much higher than your average permie. That is why we get higher pay.

Another bloody permie thinking contracting is all about a quick easy buck....

[Hex]

Your welcome

You're

[oracleslave]

May I just thank you for being a really nice person......

Your welcome

[malvolio]

The whole thing just sounds like madness.....

I was really interested in giving the contractor game a go but right now im just being scared away from it. If the IR aren’t making things clear what hope do you have of doing things properly. To make us pay employers NI contributions is madness.

The risks involved with contracting, aka finding the next job etc plus the tax issues makes it pointless. If I get caught by IR35 I am not that much better off.

I suppose the IR are getting what they want....but surely a healthy contractor market is overall better for the economy ?

One final question, if I take a contract in London (I live in the north west) can I legally submit the cost of the accommodation (serviced apartment or hotel) as an expense?

Hmmm.. I just knew this post would come in handy again..

http://forums.contractoruk.com/452897-post3.html

When you've understood that lot, come back and try again.

HTH

[Jubber]

There are a lot more risks when starting any business than being employed. Hector is but one of many (if paying tax is a risk). He doesn't spend all day in his office squeezing stones, sometimes he does want to see books and paperwork. My dealings so far with him have always been OK and I've had a PAYE (IR35) review. Keep your affairs in tip top order and all should be well.

Unfortunately, you chose to read some information from a company who's business model is based around temporary workers choosing them to run their pay roll, rather than someone checking all the relevant information and making a decision to go for it and start a business. At the end of the day, that's all you can do. It is your decision. But as I've mentioned before, there are a lot of people making a healthy living out of the 'IR35'.

Good luck in what you choose.

J

[dx4100]

The whole thing just sounds like madness.....

I was really interested in giving the contractor game a go but right now im just being scared away from it. If the IR aren’t making things clear what hope do you have of doing things properly. To make us pay employers NI contributions is madness.

The risks involved with contracting, aka finding the next job etc plus the tax issues makes it pointless. If I get caught by IR35 I am not that much better off.

I suppose the IR are getting what they want....but surely a healthy contractor market is overall better for the economy ?

One final question, if I take a contract in London (I live in the north west) can I legally submit the cost of the accommodation (serviced apartment or hotel) as an expense?

[Denny]

Im totaly confused....

How is any contractor manging to stay outside of it ?? Its all very well rewording the contract but arent the majority of people just lieing ??

Not necessarily, but I think a lot of contractors are burying their heads in the sand hope that the Revenue won't notice. Many of them are just being deceived into thinking they're outside when, in fact,they will probably be caught according to the Revenue's criteria of what consistutes a 'real business.'

There's a lot of luck involved as well because the definition of employee or business is not clear for tax purposes. Much depends on how reliable your EB and/or client testimonials are, how good your accountant is in wrapping up the investigation enquiries quickly and efficiently.

[dx4100]

I'm

totally

A lot


understanding

managing

aren't

You can barely spell IR35 so you have no hope of understanding it.

HTH.

May I just thank you for being a really nice person......

[chris79]

Lol, it's published by Parasol (an umbrella company) and as already stated above they rely on getting people INSIDE IR35 to use their services, so I would unsurprisingly treat it as perhaps bias propaganda showing only one aspect/perspective on it.

[Jubber]

please remember parasol want people to be inside ir35 as they can then persuade them to join their umbrella scheme by saying that running a limited is not worth it if they are caught by ir 35

Exactly - like a lot of people out there - they're making a mint out of the IR35 'frighteners' gravy train.

If you want to run your own business go for it, otherwise you may as well go PAYE with the agency. (if you can)

[MickeyP]

Im totaly confused....

Allot of people seem to say go for a limited company setup......

But how are people getting around IR35 ??

This link seems to repersent my understanindg on what makes you above and below it: http://www. parasolgroup.co.uk/contractor-knowledge/contractor-guides/contractor-knowledge/who-is-affected-by-ir35msc-legislation/

How is any contractor manging to stay outside of it ?? Its all very well rewording the contract but arent the majority of people just lieing ??

Thanks for any advice

<mod edit>Link purposefully broken</mod edit>

you forgot:

represent

lying

[sidknows]

please remember parasol want people to be inside ir35 as they can then persuade them to join their umbrella scheme by saying that running a limited is not worth it if they are caught by ir 35