ir35

chiefie

Hi

Being made redundant in may but employer has offered to give me 18 months of work for them and two associated companies for 18 months on a day rate.

Looking at posts on here I plan to set up a limited company and proud services to these companies to avoid ir35 taxation if this is possible.

I think I can set it up this way but haven't seen any examples of ir35 compliant contracts.

If anyone could point me in the right direction that would be great.

Thanks

closed

http://www.hmrc.gov.uk/ir35/faq_qanda/contract_q11.htm

chrismac1

Why anyone would rely on HMRC for anything to do with IR35 is beyond me.

https://www.pcg.org.uk/contract-templates

http://shop.qdosconsulting.com/freelancer/products-services/full-ir35-contract-review

There are numerous other sites, after all this is the biggest tax battleground in this country over the past decade.

My IR35 clients have a four point plan:

1. Get the contract reviewed formally.
2. Get tax investigation insurance.
3. Keep a diary of specific dates when, on the face of it, the contract was operated in such a way that you were clearly outside of IR35.
4. Run a limited company and run it properly - no taking the Mickey with business entertaining, travel or anything else which will encourage HMRC to visit.

agrinnall

Of course, you don't have to avoid IR35. If you forget about the company making a profit so that you can pay dividends and instead ensure all income is dealt with either as legitimate expenses or paid out to you and HMRC through PAYE then there's nothing more to worry about. This is what I did when IR35 first came in and all of us contractors worried about what the effects might be, and while I didn't keep as much of the money as I did when operating a small salary / large dividend routine I still made more than I would have as an employee of the places where I contracted.

Mupette

2 directors with identical dividends.
more than one client


the crucial question to ask is, if this was proper employed work would you be treated the same

holiday/ pay
sick leave /pay