Reply to: Limited company to Umbrella, will that avoid ir35 issues

[VectraMan]

Indeed which is why I go through my accounts with a fine tooth comb, in fact I found such an error in my last set (expenses attributed to the wrong category), informed the accountant and he apologised and sorted it, my point is that this is a once a year activity (well 4 times a year for VAT as well but that's easier to confirm whether its correct) and I don't find it a hassle at all, take your point that some people don't GAS and get themselves in a mess but IMO those people should have just stayed permie and picked up their paycheck once a month in perpetuity.

It's not very difficult, granted, and I do it all myself. But it is some effort and a lot of people just want to earn a living. Staying permie isn't necessarily an option; perhaps they were made redundant and were offered work as a contract. Not everybody is choosing contracting as a way of life; some people take some temporary work and then discover that they need either a Ltd., which is totally alien to them, or a hassle free umbrella. A couple of my relatives went through exactly this.

[jamesbrown]

Indeed which is why I go through my accounts with a fine tooth comb, in fact I found such an error in my last set (expenses attributed to the wrong category), informed the accountant and he apologised and sorted it, my point is that this is a once a year activity (well 4 times a year for VAT as well but that's easier to confirm whether its correct) and I don't find it a hassle at all, take your point that some people don't GAS and get themselves in a mess but IMO those people should have just stayed permie and picked up their paycheck once a month in perpetuity.

Fair enough, but what you describe is, indeed, beyond some people as it requires the upfront research to understand each submission and your various responsibilities as a director, not just the time spent scrutinizing each submission once you have that understanding.

[SlipTheJab]

I'll let you Google Darren Upton but, that aside, do you seriously think that your accountant gets it right all the time? All professionals make mistakes, myself included. However, you and YourCo are ultimately responsible for these mistakes, so you need to be able to give your accounts more than a cursory nod, and you also need to register with all the relevant online services (HMRC, Companies House etc.) to monitor things. That's why some people are better off with a brolly. It can go pear-shaped.

Indeed which is why I go through my accounts with a fine tooth comb, in fact I found such an error in my last set (expenses attributed to the wrong category), informed the accountant and he apologised and sorted it, my point is that this is a once a year activity (well 4 times a year for VAT as well but that's easier to confirm whether its correct) and I don't find it a hassle at all, take your point that some people don't GAS and get themselves in a mess but IMO those people should have just stayed permie and picked up their paycheck once a month in perpetuity.

[MrMarkyMark]

@MMM since there are plenty of people with respiratory illnesses your joke isn't funny.

Agreed, however, in context, that comment was in no way directed at them.

[SueEllen]

@MMM since there are plenty of people with respiratory illnesses your joke isn't funny.

[jamesbrown]

I have never understood why people are always banging on about it being such a 'hassle' running a Ltd, it takes me half an hr a month to keep on top of my stuff and my accountant does the rest!

I'll let you Google Darren Upton but, that aside, do you seriously think that your accountant gets it right all the time? All professionals make mistakes, myself included. However, you and YourCo are ultimately responsible for these mistakes, so you need to be able to give your accounts more than a cursory nod, and you also need to register with all the relevant online services (HMRC, Companies House etc.) to monitor things. That's why some people are better off with a brolly. It can go pear-shaped.

[MrMarkyMark]

FTFY

Some people find breathing in and out a hassle.

[northernladuk]

I have never understood why people are always banging on about it being such a 'hassle' running a Ltd, it takes me half an hr a month to keep on top of my stuff and my accountant does the rest!

There are more than enough horror stories on here prove its an issue. I can think of at least three posts that were in very serious trouble last year and Id be willing to bet that's the tip of the iceberg. I can't understand it either to be honest but there is very clear evidence some people can't do it.

[SueEllen]

I have never understood why people are always banging on about it being such a 'hassle' running a Ltd, it takes me half an hr a month to keep on top of my stuff and my accountant does the rest!

Some people find basic book keeping a hassle.

[SlipTheJab]

I have never understood why people are always banging on about it being such a 'hassle' running a Ltd, it takes me half an hr a month to keep on top of my stuff and my accountant does the rest!

[SimonMac]

With the lack of expenses and potential April 2017 changes I imagine the "hassle" of running a Ltd compared to just going down the Brolly route will appeal to a lot more people

[SlipTheJab]

I think it means he's already been caught and is hoping by closing down the Ltd. and joining a brolly he can evade the tax he owes.

[VectraMan]

What the heck does that mean?

I think it means he's already been caught and is hoping by closing down the Ltd. and joining a brolly he can evade the tax he owes.

[SlipTheJab]

Depends what you mean by "issue".

If you mean the worry and hassle of being investigated in regards to IR35, then no.

If you mean incurring the costs of being in IR35, then a PAYE umbrella doesn't help - as you get taxed as if you are inside IR35 anyway - in fact slightly worse.

Especially with the T&S changes coming in in April, brollies just got even less appealing...

[NotAllThere]

...If my limited company is going to be closed down , from an audit or similar...

What the heck does that mean?