Reply to: Two contracts at same time

[kaizenkris]

Sure, everything goes in your SATR, including all earnings from your employments. Obviously, if they push you into the higher or further rate bands, you’ll pay higher or further rate tax on any dividends, for example. Strictly speaking, if you don’t have any sources of income chargeable to tax (other than your PAYE employments), then you don’t need to complete a SATR, unless asked, but it’s HMRC’s view that you need to complete one as a company director.

sure thanks for info

[jamesbrown]

thanks for response, Ok so if the first one is umbrella employment and second normal limited company (retain funds, pay dividends etc). When filling self assesment for limited company do we need to mention anything related to umbrella employment? Can they both be operated independantly?

Sure, everything goes in your SATR, including all earnings from your employments. Obviously, if they push you into the higher or further rate bands, you’ll pay higher or further rate tax on any dividends, for example. Strictly speaking, if you don’t have any sources of income chargeable to tax (other than your PAYE employments), then you don’t need to complete a SATR, unless asked, but it’s HMRC’s view that you need to complete one as a company director.

[kaizenkris]

An umbrella employment is an employment so IR35 is irrelevant. Accountants don't manage your contracts (MSC legislation). You have a PAYE salary for one and a choice for the other (retain the funds, pay dividends etc.). But if you had one contract that was inside and another that was outside and you ran them both through your own company, then you would receive a deemed payment for the contract that was inside and you'd have a choice for the other.

It's pretty obvious, isn't it?

thanks for response, Ok so if the first one is umbrella employment and second normal limited company (retain funds, pay dividends etc). When filling self assesment for limited company do we need to mention anything related to umbrella employment? Can they both be operated independantly?

[jamesbrown]

What if one has one contract which is inside ir35(paid by umbrella - tax deducted) and another one outside ir35 managed by accountant.
How does tax(self assessment) work in this case?

An umbrella employment is an employment so IR35 is irrelevant. Accountants don't manage your contracts (MSC legislation). You have a PAYE salary for one and a choice for the other (retain the funds, pay dividends etc.). But if you had one contract that was inside and another that was outside and you ran them both through your own company, then you would receive a deemed payment for the contract that was inside and you'd have a choice for the other.

It's pretty obvious, isn't it?

[kaizenkris]

What if one has one contract which is inside ir35(paid by umbrella - tax deducted) and another one outside ir35 managed by accountant.
How does tax(self assessment) work in this case?

[aposto]

But you aren't. Oh dear....

help me then.. I don't understand. To apply for ECAA visa you need to provide a business plan for 3 years. In that plan I told them I will be contracting and giving Business Analysis services, etc. It shouldn't be a violation to work as a contractor unless I have multiple clients until end of 1st year.

[northernladuk]

@northernladuk, it is ECAA business person visa. I can contract, in fact I am restricted to work as self-employed.

But you aren't. Oh dear....

[aposto]

Which visa are you on T1E? You shouldn't be contracting on a T1E as you cannot fulfill many of the renewal criteria. Employing people for one. Even your friends and all their workarounds on the Immigration boards know this.

@Eirikur; thanks I will check that forum, seems like a good one.

@northernladuk, it is ECAA business person visa. I can contract, in fact I am restricted to work as self-employed.

[northernladuk]

I am not sure if this is right place, but, I will be applying to extend my work visa this October. For that application and to get the extension I need to prove Home Office that I am a legitimate Ltd director and worked with multiple clients with in last year. I am working for the same company for last 5 months now, and it seems like they will be asking for another extension to my contract, which will probably mean I will be working only with them until October.
To convince home office I need to work for multiple contracts. I was searching for WFH, flexible hours roles, but my role is IT Business Analyst, which means it is nearly impossible to find any such contract.
Apart from asking other contractors to exchange some "fake" invoices, I can't think of any solution to my problem.
Can you help me to solve it, did you have a similar problem before?
Thanks,

Which visa are you on T1E? You shouldn't be contracting on a T1E as you cannot fulfill many of the renewal criteria. Employing people for one. Even your friends and all their workarounds on the Immigration boards know this.

[Eirikur]

I am not sure if this is right place, but, I will be applying to extend my work visa this October. For that application and to get the extension I need to prove Home Office that I am a legitimate Ltd director and worked with multiple clients with in last year. I am working for the same company for last 5 months now, and it seems like they will be asking for another extension to my contract, which will probably mean I will be working only with them until October.
To convince home office I need to work for multiple contracts. I was searching for WFH, flexible hours roles, but my role is IT Business Analyst, which means it is nearly impossible to find any such contract.
Apart from asking other contractors to exchange some "fake" invoices, I can't think of any solution to my problem.
Can you help me to solve it, did you have a similar problem before?
Thanks,

Don't now the answer to your question, but this is a link to a great forum to ask these type of questions:
Immigrationboards.com • Immigrationboards.com

[aposto]

to find multiple clients..

I am not sure if this is right place, but, I will be applying to extend my work visa this October. For that application and to get the extension I need to prove Home Office that I am a legitimate Ltd director and worked with multiple clients with in last year. I am working for the same company for last 5 months now, and it seems like they will be asking for another extension to my contract, which will probably mean I will be working only with them until October.
To convince home office I need to work for multiple contracts. I was searching for WFH, flexible hours roles, but my role is IT Business Analyst, which means it is nearly impossible to find any such contract.
Apart from asking other contractors to exchange some "fake" invoices, I can't think of any solution to my problem.
Can you help me to solve it, did you have a similar problem before?
Thanks,

[Einstein Jnr]

A key piece of information you didn't put in the original post, Junior. Yeah, you can probably pull something like this off for a month, maybe even two, if at least one of them is WFH. Congratulations. (Wondering how many latent bugs you have because you were tired, though. )

I didn't have this info when posting my original post. It was only when I decided to take a closer look and understand what the client wants that I could gauge how long it would take me. Client was happy I came in shorter time than their estimate, I was happy as I still have a week of slack built in and I don't code so no bugs to be left behind

[WordIsBond]

After looking at the project it was about a months worth of work

A key piece of information you didn't put in the original post, Junior. Yeah, you can probably pull something like this off for a month, maybe even two, if at least one of them is WFH. Congratulations. (Wondering how many latent bugs you have because you were tired, though. )

[northernladuk]

You got away with it then.

[Einstein Jnr]

I just wanted to say I went for it. After looking at the project it was about a months worth of work which I could deliver. It should be done by end of the week. It was challenging balancing the two contracts but it was worth it, for the experience. For those thinking of dong this, you need to carefully evaluate the options as most of the times it may not be possible. But have to say the double billing will put a big chunk into the chest.