Shall I propose to my new employer to hire me via my LTD?

uknick

Use this HMRC checker for IR35 status.

https://www.gov.uk/guidance/check-employment-status-for-tax

It's not perfect, but I used it whilst contracting for the public sector to overturn the client's original decision the contract was inside IR35. Turns out they were just playing safe and hadn't bothered to actually check the rules.

Two important question in the check are a) can somebody else from your company substitute for you and b) how much control do you have over the work.

I can't comment on the role you are looking at but if you are filling a full time post and are at the behest of the management with regard to your working routine, there will be a good chance the role is inside IR35.

DoctorStrange

If I can save e.g. £10k per year cash by working as LTD, it would be great.

Again, you don't get the choice of "working as an individual" or "working as a ltd". A limited company will sign a business to business contract for provision of services, whereas an individual will sign a contract for service. You can't mix and match the two.

You seem be under the impression that you can be an employee of a company other than your own limited and somehow pay less tax as a result. You can't.

Perhaps if you provide more information regarding what your limited company actually does, what services you'll be providing to the end client and on what basis, and whether that client is private or public sector we might be able to explain things in a little more detail.

csgohan4

OP I suggest you change accountant too, if they are unable to advise you on simple thigs like using a limited company, AND paying 100 a month, your being ripped off




As above I suspect you will be within IR35, is it worth risking a HMRC investigation is the other question. Unless you can provide a water tight ir35 compliant contract and a suitable replacement amongst other things, you are in effect a disguised employee.


Consult a professional to make sure your within the right side of the tax law

00ec25

and in case you are wondering, HMRC have recently sent letters to > 1,500 "contractors" who have worked "at" GSK for years informing them that they think each falls within IR35.

It is not yet at the stage of a formal HMRC investigation, but we have had clients beating down our door looking for reassurance on the nature of their contract, including one who we have previously told that they would fail, since we give a free review of contracts as part of our service on sign up. On the other hand, the one who has been working there 5 days a week for 5+ years with no other source of income is, on paper, cast iron watertight.

DoctorStrange

And therein lies the absurdity of all this: even if your legal contract is watertight, it doesn't help.

The "hypothetical contract" HMRC construct overrules the actual one.

Madness

liz_bartun

HappyUser wrote: »

My accountant is an '...' because I think he only cares for me to pay him the £100 fee per month and he won't give me objective advice.

Did you discuss what would be covered by the £100/month fee? You would most likely have signed an agreement (engagement letter) that should have detailed whether the type of objective advice you have asked him for counts as included or extra. It's unlikely that he "won't" give you the advice.

But really, if you have lost faith/trust in your accountant then you really ought to find another.

DoctorStrange

To be fair to the accountant here, whether engagements fall under the intermediaries legislation or not is a matter of employment law, not accountancy.

If the OP wishes to know the differences between earning £X wages versus £X Gross Profit, the accountant should be able to tell him but he cannot review the OP's job offers or business opportunities and advise which ones to take.

tebthereb

DoctorStrange wrote: »

To be fair to the accountant here, whether engagements fall under the intermediaries legislation or not is a matter of employment law, not accountancy.

If the OP wishes to know the differences between earning £X wages versus £X Gross Profit, the accountant should be able to tell him but he cannot review the OP's job offers or business opportunities and advise which ones to take.

IR35 relates to tax legislation not employment law so really it’s a chartered tax advisor that would be best equipped to advise on it.

Status for tax purposes and employment law purposes are often the same but not necessarily.

On the subject of fees it seems a lot to expect an accountant to cover that within a £100pm agreement if they didn’t envisage (or more importantly, engage to provide) that advice. It’s a risky complex area.