Reply to: Inside IR35 expenses

[smileyface]

But now it's different. You are employed.

Unfortunately,

[northernladuk]

I ask because when I was in a contract outside IR35, VAT was paid to my ltd co.

But now it's different. You are employed.

[smileyface]

VAT applies between the client and the agency, and the agency and the umbrella. It does not apply to you as an individual.

I ask because when I was in a contract outside IR35, VAT was paid to my ltd co.

[DeludedKitten]

Or am I stupid to even mention VAT because through an umbrella you are treated as employee and VAT doesn't come into play?

VAT applies between the client and the agency, and the agency and the umbrella. It does not apply to you as an individual.

[northernladuk]

Or am I stupid to even mention VAT because through an umbrella you are treated as employee and VAT doesn't come into play?

What the client pays the brolly is of absolutely no concern to you.

[smileyface]

Thanks.

BTW, for the inside ir35 contract, does the client pay VAT to my umbrella co or not?

Or am I stupid to even mention VAT because through an umbrella you are treated as employee and VAT doesn't come into play?

[northernladuk]

I have an 'interview' every Tuesday evening in Wetherspoons, Canary Wharf with my pal. All expenses paid ;-)

I take it all back then.. Fill yer boots!

[oliverson]

Indeed but then there is common sense that interviews don't last very long so claiming a full meal to travel a reasonable distance to an interview that lasts half an hour could be pushing it.

Obviously different for country wide interviews. Just thought I'd mention it.

I have an 'interview' every Tuesday evening in Wetherspoons, Canary Wharf with my pal. All expenses paid ;-)

[northernladuk]

Just to be clear.

We've got it.. thanks.

[smileyface]

That would make sense. You are an employee of the umbrella so they pay you individually

Thanks.

BTW, for the inside ir35 contract, does the client pay VAT to my umbrella co or not?

[DeludedKitten]

That's impossible (and not needed) as far as I'm aware because the income from my INSIDE IR35 contract (via the Umbrella co) will be paid directly into my personal bank account, NOT my Ltd Co account, so I'm told.

That would make sense. You are an employee of the umbrella so they pay you individually

[smileyface]

Why do you keep using capitals?

Just to be clear.

[northernladuk]

That's impossible (and not needed) as far as I'm aware because the income from my INSIDE IR35 contract (via the Umbrella co) will be paid directly into my personal bank account, NOT my Ltd Co account, so I'm told.

It will be in your case but in some cases it is possible to still get paid gross from the client and your LTD does all the taxation. Uncommon and not really the best option either.

Why do you keep using capitals?

[smileyface]

You can pay dividends from retained profit. You're taxed as normal on those - 0%, 7.5%, 32.5%, 38.1%.

You cannot pay dividends from income that is from an inside IR35 role.

That's impossible (and not needed) as far as I'm aware because the income from my INSIDE IR35 contract (via the Umbrella co) will be paid directly into my personal bank account, NOT my Ltd Co account, so I'm told.

[northernladuk]

You can pay dividends from retained profit. You're taxed as normal on those - 0%, 7.5%, 32.5%, 38.1%.

You cannot pay dividends from income that is from an inside IR35 role.

WHAT deludedkitten SAID in the POST ABOVE.