Tax

tobylyla

Hello all...  I hope you can help me?  I have applied for a new job and the tax is LTD and another is inside IR35 umbrella- what does this mean? Of course, I have heard of them but never really had to take any interest until now. I have googled it but it still seems a bit more confusing, is it the same as self-employed ?

Any help would be appreciated!

MovingForwards

tobylyla said:

Hello all...  I hope you can help me?  I have applied for a new job and the tax is LTD and another is inside IR35 umbrella- what does this mean? Of course, I have heard of them but never really had to take any interest until now. I have googled it but it still seems a bit more confusing, is it the same as self-employed ?

Any help would be appreciated!

Ask on the employment board as the question does pop up:
https://forums.moneysavingexpert.com/categories/employment-jobseeking-training

PipneyJane

Both of those jobs look as if they are contract roles, through an agency.  LTD usually stands for "limited".  In that case. you would be expected to operate your own limited company and not be an employee of the agency or of the company for which you are working.

Inside IR35 means that you are taxed as if you are an employee of the company with which you are contracting BUT you have no employment rights with them.  Usually, you will be a temporary employee of the hiring agency, or of an umbrella company - not recommended (lots of scandals) - and they will bill the client and pay you via payroll, as if you were an employee.  More rarely if your own limited company is contracting direct with the ultimate employer, they will deduct income tax and NIC prior to paying your company's invoices.

HTH

- Pip