Reply to: brolly to limited setup-my case

[LisaContractorUmbrella]

Aye but it's the pleasure you get out of it that worries us

[northernladuk]

Sometimes you have to be cruel to be kind

Aye but it's the pleasure you get out of it that worries us

[LisaContractorUmbrella]

You are mean.

Sometimes you have to be cruel to be kind

[SueEllen]

No it doesn't. Have a read here for some history: HM Revenue & Customs: IR35 - Countering Avoidance in the Provision of Personal Services here for some updates which came following a couple of HMRC victories https://www.pcg.org.uk/update-recent-ir35-case-law, here for another opinion on the same subject Contractors shouldn't rely on non-IR35 case law :: Contractor UK, here for the Business Entity Tests which allow you to score how at risk you are of an IR35 investigation from HMRC http://www.hmrc.gov.uk/ir35/guidance.pdf and here http://forums.contractoruk.com/busin...ity-tests.html to understand why some people think the BET's are rubbish.

When you have read and understood all of the above you may be in a position to make a decision about your IR35 status, until then I would leave it to the professionals

You are mean.

[LisaContractorUmbrella]

Only that I must not be a disguised employee. My contract clearly states that I could be terminated without any notice or notice pay. Does that not make me outside IR35?

No it doesn't. Have a read here for some history: HM Revenue & Customs: IR35 - Countering Avoidance in the Provision of Personal Services here for some updates which came following a couple of HMRC victories https://www.pcg.org.uk/update-recent-ir35-case-law, here for another opinion on the same subject Contractors shouldn't rely on non-IR35 case law :: Contractor UK, here for the Business Entity Tests which allow you to score how at risk you are of an IR35 investigation from HMRC http://www.hmrc.gov.uk/ir35/guidance.pdf and here http://forums.contractoruk.com/busin...ity-tests.html to understand why some people think the BET's are rubbish.

When you have read and understood all of the above you may be in a position to make a decision about your IR35 status, until then I would leave it to the professionals

[kal]

Only that I must not be a disguised employee. My contract clearly states that I could be terminated without any notice or notice pay. Does that not make me outside IR35?

Yes it does, that really is all it takes , seriously do some research or forget the contracting and get yourself a nice 'safe' permie job...

[northernladuk]

Only that I must not be a disguised employee. My contract clearly states that I could be terminated without any notice or notice pay. Does that not make me outside IR35?

Start doing some of your own research. People have tried holding your hand here but you are on your own now. There is a link to the right that says IR35 on it. There is a search that will return 1000's of threads on it, there is google that will bring back 10's of thousands of threads on it.

You run a business now so it's high time you got of your arse and started doing you research I am afraid.

Start with the newbies guide to the right and then read all the links there. Then read em again.

[GazCol]

Only that I must not be a disguised employee. My contract clearly states that I could be terminated without any notice or notice pay. Does that not make me outside IR35?

No, not at all. Google IR35 and you'll find everything from guides to tests, from case history to ideal contract clauses and contract review services.

Even then, that's half the potential battle, as working practices are also scrutinised. You want your relation to the client co to be business to business, not business to just another member of the team.

If you've not thought about insurance, setting up a business bank account (which is potentially a battle within itself), joining the PCG, what costs you can classify as business expenses, how much control you have over the work that you do and the manner that you do it, it might be worth sticking with a brolly for this contract and setting up the limited company to take over if an extension is offered, using this period to fully investigate whether going limited is, firstly, viable and, secondly, understanding exactly what it is you and your business will need to operate.

Definitely get an accountant sooner than later as others have said, preferably a practice that has experience with contractors - meaning, in all likelihood, the semi-retired accountant that charges £500+VAT won't cut it.

[jamesbrown]

Does that not make me outside IR35?

That right there is your problem, you don't know. Get your contract reviewed and also do some reading. You should be able to pay extra for a quick turnaround.

[Arnie365]

How much do you understand about IR35?

Only that I must not be a disguised employee. My contract clearly states that I could be terminated without any notice or notice pay. Does that not make me outside IR35?

[northernladuk]

Being an accountant, you might think that I am biased in all of this but I think others (NLUK) would support my view: you really would be better off appointing an accountant from the outset to get all of this right!

Even if you don't do that, get the contract reviewed by a specialist in IR35 (qdos or the likes of) straight away - looking over it yourself will not cut it (unless by chance you are a specialist in contract law) and even if it does look similar to an old one, IR35 would not have been a consideration through a brolly.

Hope this helps!
Craig

Indeed, either that or blindly stumble in to something that you are legally bound to with only a bit of help from a load of gimps on a forum. No brainer really and if you want a good accountant that knows his stuff he just posted on this thread. HTH

[Craig at Nixon Williams]

A 3-month contract has materialised that my agency wants me to sign close of play today for a gig starting monday. I haven't got much time to compare accountancy firms and request company formation. The contract looks similar to many I have brollied through, outside ir35.
I intend to:-
1. Register my ltd company directly at companieshouse.gov.uk
2. Sign the contract with the agency as the director, so I am good to start Monday.
3. Go look for an accountancy firm later to take care of the rest.

Am I doing anything wrong?

Being an accountant, you might think that I am biased in all of this but I think others (NLUK) would support my view: you really would be better off appointing an accountant from the outset to get all of this right!

Even if you don't do that, get the contract reviewed by a specialist in IR35 (qdos or the likes of) straight away - looking over it yourself will not cut it (unless by chance you are a specialist in contract law) and even if it does look similar to an old one, IR35 would not have been a consideration through a brolly.

Hope this helps!
Craig

[northernladuk]

And VAT and FRS....

Someone is going to find the first couple of months hard going I think

[GazCol]

A 3-month contract has materialised that my agency wants me to sign close of play today for a gig starting monday. I haven't got much time to compare accountancy firms and request company formation. The contract looks similar to many I have brollied through, outside ir35.
I intend to:-
1. Register my ltd company directly at companieshouse.gov.uk
2. Sign the contract with the agency as the director, so I am good to start Monday.
3. Go look for an accountancy firm later to take care of the rest.

Am I doing anything wrong?

You'll need to arrange PL & PI insurance and open a business bank account too.

[northernladuk]

And make sure you read and fully understand the contract. Don't sign stuff you don't understand.

Look up opt out rules and make sure you understand that situation as well