Hi, newbie, advice sought
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    Default Hi, newbie, advice sought

    Hi
    Just turning 50 and been in permanent employment for most life, took redundancy last year and went contracting after 4 weeks off.
    5 months in present contract (management position within local gov and inside IR35 & I am using umberella) and post is now advertised for full time position. Got nod I would have good chance if I wanted to apply.

    Last week new offer with another employer has been made to me to cover an unexpected retirement, role will be for 3-6 months and then will be filled full time perm. This contract role will be outside IR35.
    I am going to accept and take the new contract as it has more side benefits (closer, better pay, role tasks, etc.).

    My Questions are:
    a) Is it worthwhile to set up as limited co for tax benefits given 6 months expected length. As it would mean tax paid on both PAYE and also limited co inside the same tax years. (17/18 & 18/19)?
    b) To be fair I am leaning towards finding a perm position so contracting will be relatively med - short term, though nothing in life guaranteed, general advice?

    Thanks in advance for guidance.

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    Quote Originally Posted by New50 View Post
    Last week new offer with another employer has been made to me to cover an unexpected retirement, role will be for 3-6 months and then will be filled full time perm. This contract role will be outside IR35.
    Not if it's another employer it won't be.

    Quote Originally Posted by New50 View Post
    a) Is it worthwhile to set up as limited co for tax benefits given 6 months expected length. As it would mean tax paid on both PAYE and also limited co inside the same tax years. (17/18 & 18/19)?
    Probably not.

    Quote Originally Posted by New50 View Post
    b) To be fair I am leaning towards finding a perm position so contracting will be relatively med - short term, though nothing in life guaranteed, general advice?
    Take the permie offer.
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    +1 to all the above.
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    Default

    Thanks for advice.

    On new post it is with 3rd sector (charitable housing association). Why would role not be considered outside ir35?

    Regards SDC, the test is mixed bag results.

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    Quote Originally Posted by New50 View Post
    Thanks for advice.

    On new post it is with 3rd sector (charitable housing association). Why would role not be considered outside ir35?
    Because it's planned to be filled with a perm role? Therefore it is an employer/employee position.

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    Quote Originally Posted by TheFaQQer View Post
    Not if it's another employer it won't be.



    Probably not.



    Take the permie offer.
    can you not set up as ltd company through your current umbrella company just for the 6 months?

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    Quote Originally Posted by SaraMac View Post
    can you not set up as ltd company through your current umbrella company just for the 6 months?
    Eh?

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    Quote Originally Posted by SaraMac View Post
    can you not set up as ltd company through your current umbrella company just for the 6 months?
    No
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    Quote Originally Posted by TheFaQQer View Post
    No
    Surely they could? Just have the money paid from the Umbrella paid to the LTD instead of personally? Forgot the why the f**king hell would you do something so utterly stupid issue for the moment. It's still possible no?
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    Quote Originally Posted by stek View Post
    Because it's planned to be filled with a perm role? Therefore it is an employer/employee position.
    Ah but what if I don't know that for certain.

    My understanding is old role that staff member retired from job description is likely to be re-written i.e. a new position with different or amended responsibilities etc.

    Its playing on semantics a bit. Though my experience is things can slip and filling of post may not happen for some time. One could argue they are filing with temp to allow the business to reassess and take a judgment view on what they need... How many went into a contract for 3 months and ended up there a few years later still on contract... if they didnt go limited then its lost opportunity to be tax intelligent/efficient

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