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Fell in IR35. Now claim lots of expenses
quatrofromageo
Posts: 130 Forumite
This is a follow up to this thread from a few weeks back.
Just wanted to say thanks for everyone's input and advice.:beer:
Basically, I bit the bullet and came clean about my extra earnings on the side because I knew I was going to fall within the ir35 rules and would get caught out at some point.
Luckily, because I'd kept records of all my invoices I didn't have to delve through my chaotic Paypal account, although I kept my modest affiliate and eBay earnings out of it. Even I can't make sense of that, so I'd only crucify myself if I shared all that.
So I had 2 years of heavy tax owned to the tax man. Currently paying that back in instalments, which isn't so bad. Basically all my extra work on the side is generating enough income to pay the instalments without eating into my take home pay from my full time employment. So after about 6 months I should go back to making some profit from the extra work once again.
But, I've been claiming expenses like you wouldn't believe! It's crazy how much you can claim for, even when you're in ir35. :rotfl:
Obviously, I'm being careful not to totally abuse it, but it's the only thing that makes being ir35 worthwhile. Only thing is that you need to actually need to keep buying certain things. It ties in nicely for me, but may not for others.
Anyway, just thought I'd share how I got on and how I resolved my issues in the end in case anyone else has a similar problem.
Just wanted to say thanks for everyone's input and advice.:beer:
Basically, I bit the bullet and came clean about my extra earnings on the side because I knew I was going to fall within the ir35 rules and would get caught out at some point.
Luckily, because I'd kept records of all my invoices I didn't have to delve through my chaotic Paypal account, although I kept my modest affiliate and eBay earnings out of it. Even I can't make sense of that, so I'd only crucify myself if I shared all that.
So I had 2 years of heavy tax owned to the tax man. Currently paying that back in instalments, which isn't so bad. Basically all my extra work on the side is generating enough income to pay the instalments without eating into my take home pay from my full time employment. So after about 6 months I should go back to making some profit from the extra work once again.
But, I've been claiming expenses like you wouldn't believe! It's crazy how much you can claim for, even when you're in ir35. :rotfl:
Obviously, I'm being careful not to totally abuse it, but it's the only thing that makes being ir35 worthwhile. Only thing is that you need to actually need to keep buying certain things. It ties in nicely for me, but may not for others.
Anyway, just thought I'd share how I got on and how I resolved my issues in the end in case anyone else has a similar problem.
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