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Previously on "Outside to Inside IR35"

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  • Dhrucku
    replied
    Originally posted by d000hg View Post
    Have you already confirmed your accountant will give you a discount? Will you still be taking a salary/dividends from money retained in the company or anything like that, or will it just sit with a few pounds in the account totally idle?
    I asked for a discount when I finished my last contract at end February but they said they couldn’t honour it so will ask again now that I’ve had a few months of idle. I’ve got around 13k in there which I don’t really need to use right now. It all depends on what jobs are about in the next few days/weeks/months.

    Seems like the best advice is just to keep things open, pay a discounted accountant rate and pay off what I need to when required by HMRC.

    Leave a comment:


  • d000hg
    replied
    Have you already confirmed your accountant will give you a discount? Will you still be taking a salary/dividends from money retained in the company or anything like that, or will it just sit with a few pounds in the account totally idle?

    Leave a comment:


  • northernladuk
    replied
    Originally posted by Guy Incognito View Post

    I don't understand this? You can just start another limited company.
    As Eek says but you can read up more here. Lots of info out there to catch up on.

    https://www.contractorweekly.com/tax...taar-for-that/

    Leave a comment:


  • eek
    replied
    Originally posted by Guy Incognito View Post

    I don't understand this? You can just start another limited company.
    Not if you MVL'ed to reduce the amount of tax you paid - in that case you can't open a new company in the same market sector (i.e. computers or consulting) until 2 years has passed.

    Well you can but HMRC believe that the money you received from the MVL should be regarded as dividends and the appropriate tax should have been paid (that tax is of course way higher than the capital gains tax paid).

    Leave a comment:


  • Guy Incognito
    replied
    Originally posted by northernladuk View Post
    Those that MVL'd now can't re-open another for 2 years so are proper screwed.
    I don't understand this? You can just start another limited company.

    Leave a comment:


  • lukemg
    replied
    Agreed, thought outside was toast and did consider closing but glad I kept it ticking over as I am back outside and it's all in place.

    Leave a comment:


  • eek
    replied
    Originally posted by TheDude View Post

    Fewer piranhas in the tank when the outside IR35 gig floodgates open.
    Not going to happen - sadly. In fact I expect the outside IR35 gigs may reduce over this year once HMRC starts investigating.

    Leave a comment:


  • TheDude
    replied
    Originally posted by northernladuk View Post

    Sensible as we are already getting a trickle of people shutting their company down with a very short sighted opinion that this is the end of contracting. Those that MVL'd now can't re-open another for 2 years so are proper screwed.
    Fewer piranhas in the tank when the outside IR35 gig floodgates open.

    Leave a comment:


  • northernladuk
    replied
    Originally posted by Dhrucku View Post

    Agree, non trading would be a better explanation. I literally run nothing other than invoices through it.

    I will probably just keep it open in case there is future outside gigs available but everything looks inside in my area currently.
    Sensible as we are already getting a trickle of people shutting their company down with a very short sighted opinion that this is the end of contracting. Those that MVL'd now can't re-open another for 2 years so are proper screwed.

    Leave a comment:


  • Dhrucku
    replied
    Originally posted by hobnob View Post
    Be careful about what you mean by dormant. There have been some previous discussions about that, e.g.
    Dormant company expences - Contractor UK Bulletin Board
    I think that "non-trading" might be more relevant to you.

    See also:
    A contractor’s guide to dormant and non-trading companies (contractoruk.com)

    Does your company have any other regular expenses (aside from accountancy fees), e.g. a mobile phone contract, email hosting, or software licensing?
    Agree, non trading would be a better explanation. I literally run nothing other than invoices through it.

    I will probably just keep it open in case there is future outside gigs available but everything looks inside in my area currently.

    Leave a comment:


  • hobnob
    replied
    Be careful about what you mean by dormant. There have been some previous discussions about that, e.g.
    Dormant company expences - Contractor UK Bulletin Board
    I think that "non-trading" might be more relevant to you.

    See also:
    A contractor’s guide to dormant and non-trading companies (contractoruk.com)

    Does your company have any other regular expenses (aside from accountancy fees), e.g. a mobile phone contract, email hosting, or software licensing?
    Last edited by hobnob; 28 April 2022, 00:02. Reason: Added 2nd paragraph

    Leave a comment:


  • Dhrucku
    started a topic Outside to Inside IR35

    Outside to Inside IR35

    It’s not the way you think but instead, have been approached by an agency of an Inside role based on my skills.

    Now I’ve (up until now) only done outside gigs for the last four years and have a LTD company set up for it which I hold an accountant for also. My question is, do I need to do anything other than inform my accountant that I wish for my LTD to go dormant for a while (I only ever run my contract work through the LTD).

    All this means is that I’d pay a lower monthly fee for my accountant and continue to approve the work they do to make sure HMRC payments are up to date (VAT, CT etc.)

    The inside gig would be for a year (running PAYE through an umbrella) and I’d be doing no other outside work so the LTD would literally just be doing nothing.

    Just want to make sure I’m not missing anything.

    To add a typical outside rate for me is £350 but this one is offering me inside £550 which is a considerable uplift so a no brainer…
    Last edited by Dhrucku; 27 April 2022, 23:29.

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