Reply to: Expert Advice needed

[SlipTheJab]

My two links might give you a clue. It was completely the opposite to what those links explain.

In a later post he was also observed to advise a Turkey to vote for Christmas

[northernladuk]

Damn I always miss the interesting posts.

Was his advice something like "Vote Leave" ?

My two links might give you a clue. It was completely the opposite to what those links explain.

[ChimpMaster]

This advice is so awful that I've taken the rare step in Professional of removing it completely.

I've informed uk contractor to improve his advice if he wants to stay.

Damn I always miss the interesting posts.

Was his advice something like "Vote Leave" ?

[northernladuk]

Don't forget about the 24 month rule though. With a 12 month rolling contract you can only claim for the first 12 months. The second 12 month rule is going to put you over the 24 month rule so you can't claim anything T&S related for the second 12 months. It's reasonable to expect you'll be there for 24 months even if you aren't so you can't claim.

There is an example which covers the situation where a placement is expected to extend past 24 months but in fact doesn't. Still can't claim.

Example
Hassan has worked for his employer for 3 years and is sent to perform full-time duties at
a workplace for 28 months. The posting is unexpectedly ended after 18 months. No tax
relief is available for the cost of travel between his home and the workplace, because his
attendance is expected to exceed 24 months (though in fact it does not). The workplace is
therefore a permanent workplace and the journey is ordinary commuting.

I'll be willing to bet there are a lot of contractors out there that claim even though the expectation is to be there 24 months but think they can keep it if the contract ends early.

[Qdos Contractor]

Ultimately the decision as to whether to operate via a limited company or an umbrella company must be your own. However I would consider if you will be operating inside or outside of IR35? This point will have a big effect on whether operating via a limited company will be the best option or not.

If you are genuinely operating outside of IR35 you will be able to take advantage of the tax advantage of operating a limited company as well as claiming travel & subsistence (T&S) relief. However if you are inside of IR35 you would need to operate a deemed payment and T&S relief would not be allowed. If you are unsure of your IR35 position I would suggest seeking independent professional advice.

A 12 month rolling contract isn’t ideal, although would not be a conclusive issue alone. It would be more in line with self-employment for the contract to be a set period and then at the end of the period be renegotiated terms and draft a contract extension.

If operating via an umbrella company, to be able to claim the T&S relief the Supervision, Direction or Control (SDC) test must be considered. If you are not subject to SDC or a right of SDC then the T&S relief may be claimed. Again if you are unsure I suggest you seek independent professional advice.

Jon

[MrMarkyMark]

+1. Can't believe the advice he's given to a newbie looking for help. With those rose tinted glasses and a total lack of understanding/judgement of the facts staring you in the face maybe he should apply for the England Manager job!

This being a case in point where the advice is worth less than the OP paid for it

[cojak]

This advice is so awful that I've taken the rare step in Professional of removing it completely.

I've informed uk contractor to improve his advice if he wants to stay.

[mudskipper]

<mod note: rubbish advice>

OP, please don't take advice from this post.

[SlipTheJab]

Absolute bulltulip from start to finish. Please, do us a favour and delete your account.

+1. Can't believe the advice he's given to a newbie looking for help. With those rose tinted glasses and a total lack of understanding/judgement of the facts staring you in the face maybe he should apply for the England Manager job!

[northernladuk]

Here is a thread that debunks the two rule mentioned.
http://www.contractoruk.com/ir35/top..._debunked.html

It's not for the OP. It's for the pillock that's trying to advise him.

[uk contractor]

Hi all

Apologies for basic questions that i may be asking. I am going back to contracting from perm after 3 years. When I used to do contracting i used to go down the umbrella route as contract lengths were not long and i was new to contracting.

I am going to sign a new contract with a company that is a year long contract and could go on longer. I am going to be doing support work which will be standard 7.5 hours a day.

The contract could go on for a number of years but it is 12 months rolling. I have heard about all the IR35 and SDC and I do not want to get caught in them. The day rate is not much in fact it is around 150 per day. In terms of miles i will be doing 70miles per day.

Should i go down the route of umbrella or limited. ? Any advice would be appreciated

Thanks
Andy

<Mod note: rubbish advice>

[SlipTheJab]

150 notes a day, brolly for def HTH.

[northernladuk]

12 months rolling is a bit of an IR35 nightmare though.

[missinggreenfields]

The contract could go on for a number of years but it is 12 months rolling. I have heard about all the IR35 and SDC and I do not want to get caught in them. The day rate is not much in fact it is around 150 per day. In terms of miles i will be doing 70miles per day.

Should i go down the route of umbrella or limited. ? Any advice would be appreciated

Q1) Having done your research, do you think the role is going to be inside or outside IR35?

Q2) Do you want to run a limited company?

If you are inside IR35 and running your own limited company, then you can't claim your travel and subsistence expenses. Which is where the second question becomes more important - because if you don't want to run the company, then on that rate using a reputable umbrella becomes more appealing.

If you invoice 200 days a year at £150 a day, then that's £30000 over the year. Personally, I'd go umbrella, unless the contract was going to be outside IR35 - because then you can claim the travel expenses.

[BrilloPad]

I just did a year contract, went limited and used QDOS accounting.