Returning to contracting IR35

[davec123]

Good evening all,
I’ve been out the contracting work for a few years now and been books in. I’m thinking of returning to contracting and looking for advice from anyone working inside IR35 now.
1. Do I still need to be a Ltd company or Will sole trader work?
2. The consultant jobs I’m looking at are around £500-£600 per day and state they are inside IR35. How does this work regarding payment of invoices? Is it taxed at source and then the payment goes into my business bank or personal account? Are tax returns still required if I’m taxed at source?
pre-IR35 I was operating as a Ltd company with my accountant issuing a payslip for £739 per month (or thereabouts) and the rest came from dividends.
any help would be very much appreciated. Just trying to weigh up if it’s worth going subbying again. Cheers folks, Dave

[hobnob]

Short answer: you won't use a limited company or be a sole trader. You'll go via an umbrella and pay them to act as your employer. They will then sort out tax/NI and pay the net salary into your personal bank account, just like any other permanent role. You don't need to do a self-assessment tax return, but I recommend keeping an eye on the figures in case you need to claim anything back.

[davec123]

Short answer: you won't use a limited company or be a sole trader. You'll go via an umbrella and pay them to act as your employer. They will then sort out tax/NI and pay the net salary into your personal bank account, just like any other permanent role. You don't need to do a self-assessment tax return, but I recommend keeping an eye on the figures in case you need to claim anything back.

Thanks Hobnob, really appreciate taking the time to help mate. Stupid question, how do I go by an Umbrella? Is that an agency? If I’m successful for the contract do I need to sort out an umbrella company?

[cojak]

Thanks Hobnob, really appreciate taking the time to help mate. Stupid question, how do I go by an Umbrella? Is that an agency? If I’m successful for the contract do I need to sort out an umbrella company?

Work your way down the stickies in the Umbrella forum: https://forums.contractoruk.com/umbrella-companies/