Originally posted by DaveB
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Previously on "How does a FTC affect my Limited Company Status ?"
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Originally posted by DirtyDog View PostIf you are using the Ltd instead of a FTC, I think you'd have a tough time arguing being outside IR35. In which case you are going to pay the NI anyway.
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Originally posted by DaveB View PostUnless you take the standard contractors route of minimal salary + divi's that means you pay little to no NI either as employer or employee. Certainly less than you;d pay as Employee NI under an FTC.
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Originally posted by DaveB View PostUnless you take the standard contractors route of minimal salary + divi's that means you pay little to no NI either as employer or employee. Certainly less than you;d pay as Employee NI under an FTC.
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Originally posted by Sausage Surprise View PostWith Ltd you'd also pay Employer's NI.
FTC PAYE and it's just Employee's.
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Originally posted by TheCyclingProgrammer View PostWhat NLUK says. It sounds like what's on offer is a fixed term employment contract. Putting it through as a B2B contract wouldn't change the realities of the role and the underlying working practices, it would simply enable the OP to pay himself through his Ltd but it would almost certainly be IR35 caught.
It's not necessarily a given that it would be inside, but it sounds like changing the offer from a FTC to a proper IR35 friendly B2B contract AND ensuring the working practices reflect that of a genuine B2B relationship would be a bit if a stretch.
FTC PAYE and it's just Employee's.
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Originally posted by Barley View PostWhy would you need to treat it as within IR35 if you are providing consultancy services?
It's not necessarily a given that it would be inside, but it sounds like changing the offer from a FTC to a proper IR35 friendly B2B contract AND ensuring the working practices reflect that of a genuine B2B relationship would be a bit if a stretch.
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Originally posted by Barley View PostWhy would you need to treat it as within IR35 if you are providing consultancy services?
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Originally posted by TheCyclingProgrammer View PostCould negotiate a similar B2B contract instead, if the client are willing, do it through the company but treat it as inside IR35 and put it through the payroll accordingly? Not sure if there is any benefit to doing it that way mind you (plus you'd have to weigh up against the benefits you'd lose by not being an employee, if any).
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Clients use FTCs because they are scared of being done for employment rights and tax liabilities by rogue contractors. Invariably this is down to Human Remains not having a scoobie about modern contracting nor how to use them as an effective temporary resource.
However, since they are born of fear not science, the chances of turning one into a classic B2B are vanishingly small.
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Originally posted by kevpuk View PostFTC are generally (always?) contracts of employment = you could not perform this through YourCo
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Thanks Dave !No need to google, off to read this.
Worth mentioning the option of contracting with the LTD at the FTC rate if I go for it and get to interview stage. Will keep this in my pocket for future scenarios as well.
Originally posted by DaveB View PostYou will be an employee of the client but that doesn't mean you have to shut down your Ltd. You can keep it going, but it will be regarded as dormant and you should file accounts accordingly.
details here: Life of a Company - Part 1 Annual Requirements - GP2 includes information on Annual Returns, Accounting references dates, Accounts, and Auditors You want section 8.
Having said that, if you get the gig you could always pitch it to the client to run it as a fixed term contact with your ltd for the same money. You'd be slightly better off that way and it would work out cheaper for them. Depends how much the FTC is worth and how flexible the client is willing to be.
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Originally posted by DirtyDog View PostThe two aren't mutually exclusive.
Yes, you essentially become permie - you will be paid via PAYE.
No, you don't have to cease trading - keep it dormant if you want (nil PAYE and nil VAT return plus annual return), or shut it down if you aren't going to need it in the future.
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Originally posted by northernladuk View PostWow, you didn't spot the other FTC discussion right below this thread then?
How will my limited company be affected in terms or trading and do people think it is worth doing to enhance my reputation when I come back to contracting.
When I did my initial searches the threads I got were more about the income comparisons.
Sorry if you feel I am wasting your time
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Originally posted by Barley View PostEven I checked down the thread list before I posted it *polishes halo*
Aside from the relative reduction in pay, personally I couldnt accept a FTC for the reason on Limited Co impact. Im looking to buy a new house in the next year or two and dont fancy risking the potential negative impact a change in employment status would entail. Dont want to be in the position of less than 3 years solid accounts.
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