Reply to: Are LTD companies always the most income friendly way to go?

[d000hg]

My small piece of advice would be to learn it yourself. 'Contractor specialist 'accountants are over-rated...

...IMHO of course...

I disagree with the first point, and partially agree on the second. I don't believe there's much that is special about a contractor Ltd, rather you are simpler than a 'proper' company. I'm happy with my account because they seem to know what they're doing, not because they are specialists in dealing with contractors (which they are).

[SallyPlanIT]

I've always been under the impression that even if IR35 caught, you'll still be better off with a Ltd.

Also, Sally's post said he HAD to.

For which I apologise. I meant that it would be wise to determine the IR35 status, as Ltd co inside IR35 returns more than using an Umbrella, but consideration needs to be made as to whether the small amount of money is worth the hassle.

[Gonzo]

It's not IR35 which is the problem it's the other advise that is given that causes people grief.

If the accountant is use to dealing with one or two employee limited companies who tend work on one or two projects at a time and in different locations for several months/years then they can advise accordingly. It's when they are use to dealing only with those who work solely out of their own commercial premises that issues arise such as company set up and claimable expenses.

Exactly.

I once worked on a project with a contractor whose accountant was a friend of the family used to looking after shops.

The contractor had asked his accountant about claiming travel expenses (and bear in mind this included flights and hotels) but his accountant had told him that he didn't think he could claim.

To be fair, the contractor should have known better himself and if he had made sure he was aware of what is in the free guides available then he would have done.

[Contractor UK]

Cater Allen banking

As SueEllen said have a look around the site, First Timers, IR35 etc and also this bank account is one possibility to look at.

[SueEllen]

Any reasnoable accountant should be able to establish whether or not an IR35 arrangement is in place. But be warned HMRC are planning to close the net even tighter as IR35 didn't generate anywhere near the Revenue it was supposed to for the exchequer

It's not IR35 which is the problem it's the other advise that is given that causes people grief.

If the accountant is use to dealing with one or two employee limited companies who tend work on one or two projects at a time and in different locations for several months/years then they can advise accordingly. It's when they are use to dealing only with those who work solely out of their own commercial premises that issues arise such as company set up and claimable expenses.

[Wanderer]

My small piece of advice would be to learn it yourself. 'Contractor specialist 'accountants are over-rated...

...IMHO of course...

I'm starting to think that too....

[sktaxadvice]

My small piece of advice would be to learn it yourself. 'Contractor specialist 'accountants are over-rated...

...IMHO of course...

Any reasnoable accountant should be able to establish whether or not an IR35 arrangement is in place. But be warned HMRC are planning to close the net even tighter as IR35 didn't generate anywhere near the Revenue it was supposed to for the exchequer

[ratewhore]

Check that the accountant knows about contractors

My small piece of advice would be to learn it yourself. 'Contractor specialist 'accountants are over-rated...

...IMHO of course...

[NotReallyButSeriously]

IR35 isn't just about whether your contract is IR35 friendly or not. It's also about working practices. The argument is whether or not you are under direct control by the client, or if you have some free reign on how you do your job.

I don't think I'm inside IR35, even though I don't fully understand it. (Is it to do with disguising yourself as an employee for the client?). I choose my own lunch, I choose to start at 8:00am every day. But I can't see how much else I can deviate from employee rules without being unprofessional. Support is easy and I just get on with doing the job.

Spoke to HSBC today about business accounts, apparently it's free for 18 months, followed by a free account for under £500,000 a year (Which is a shame because I earn five trillion thousand a week). So it would only be accountancy fee's and the little random things I find along the way. Will seriously consider it after this current contract has finished.

[SueEllen]

Surely a forum is research, thanks everyone for the replies

Yes it is especially when it has search functionality to ensure that you get all the answers that people have forgotten to post.

Plus this site has some great links to contractor guides on different subjects under the panel with CUK Navigation.

[pmeswani]

So in a support role you take calls as they come in, deal with them in the order you deal with them. You don't have someone giving you which calls to do in what order.. I don't see the difference between this and someone saying "I want this by that date"

Some of my earlier contracts were doing support and I had very little intervention from management. Just got on with it

Ironically, in some places I have worked in (pre-contracting) there have been team leaders / managers who were responsible for allocating calls to the helpdesk team. So it wasn't the case of the helpdesk people taking the calls and dealing with it. However, as I said, it ultimately goes down to working practices.

[Jog On]

IR35 isn't just about whether your contract is IR35 friendly or not. It's also about working practices. The argument is whether or not you are under direct control by the client, or if you have some free reign on how you do your job.

So in a support role you take calls as they come in, deal with them in the order you deal with them. You don't have someone giving you which calls to do in what order.. I don't see the difference between this and someone saying "I want this by that date"

Some of my earlier contracts were doing support and I had very little intervention from management. Just got on with it

[pmeswani]

Is support catagorically inside IR35? Even with an outside contract?

IR35 isn't just about whether your contract is IR35 friendly or not. It's also about working practices. The argument is whether or not you are under direct control by the client, or if you have some free reign on how you do your job.

[GillsMan]

I've always been under the impression that even if IR35 caught, you'll still be better off with a Ltd.

Also, Sally's post said he HAD to.

Ah yes, good point. He certainly wouldn't need to - but it would be advisable as, if inside IR35, with the daily rate he's on, I'm not sure that he'd save a lot of money going Ltd compared to umbrella tbf.

[Jog On]

Is support catagorically inside IR35? Even with an outside contract?