Working out my taxes as self employed

Jeremy535897

Anyone expecting to make a taxable profit of £110,000 should definitely talk to an accountant, particularly if IR35 is an issue.

Fedcas65

Jeremy535897 said:

Anyone expecting to make a taxable profit of £110,000 should definitely talk to an accountant, particularly if IR35 is an issue.

In terms of taxation, yes, an accountant will help me, especially the first year, I won't simply use a platform online and be responsible for everything.
What I was trying to say in the last posts is that I'm not sure how to classify my job from the technical perspective. Now, if I'm doing exactly the job of all the employees, than ok, I should be inside IR35, but if most of them are just my projects, automations, softwares, security improvements (which is counted also as a project), then I should be outside IR35 in my understanding, but some tasks would be very similar, if not equal to other employees.

Just to be precise, if I don't have downtime, aka no contracts for a while, my rate would be 600-700 per day, so much more than 110k gross income.

Jeremy535897

It's not something I have familiarity with, but there is lots of material on the internet, for example
https://www.gov.uk/guidance/understanding-off-payroll-working-ir35

Fedcas65

Jeremy535897 said:

It's not something I have familiarity with, but there is lots of material on the internet, for example
https://www.gov.uk/guidance/understanding-off-payroll-working-ir35

Thanks, I think it's all here, but it's still a bit vague , anyway I'm glad my clients would be "big" enough to be almost entirely responsible for it, but what "big clients" means no one knows .
I also wonder where those regulations are written precisely, again, the gov website saying things in half, or am I stupid enough do not understand their non-written regulations??

https://www.gov.uk/guidance/understanding-off-payroll-working-ir35#who-the-rules-apply-to

In most cases, the client will be responsible for determining the employment status of the worker. However, if a worker provides services to a small client outside the public sector, the worker’s intermediary is responsible for deciding the worker’s employment status and if the rules apply.
The rules about size only apply to clients. All agencies, regardless of size, will have some responsibilities where the off-payroll working rules apply, particularly where the agency is the deemed employer.

monkey-fingers

Fedcas65 said:

Jeremy535897 said:

It's not something I have familiarity with, but there is lots of material on the internet, for example
https://www.gov.uk/guidance/understanding-off-payroll-working-ir35

Thanks, I think it's all here, but it's still a bit vague , anyway I'm glad my clients would be "big" enough to be almost entirely responsible for it, but what "big clients" means no one knows .
I also wonder where those regulations are written precisely, again, the gov website saying things in half, or am I stupid enough do not understand their non-written regulations??

https://www.gov.uk/guidance/understanding-off-payroll-working-ir35#who-the-rules-apply-to

In most cases, the client will be responsible for determining the employment status of the worker. However, if a worker provides services to a small client outside the public sector, the worker’s intermediary is responsible for deciding the worker’s employment status and if the rules apply.
The rules about size only apply to clients. All agencies, regardless of size, will have some responsibilities where the off-payroll working rules apply, particularly where the agency is the deemed employer.

Small companies are those under 50 employees and/or turning over £15m a year - it's in the rules.

In this scenario, you are responsible for determining the employment status. Just as an aside, if you get it wrong (and many do), HMRC will come after you with a very large bag of hammers!

Which is another reason why larger companies just say everyone is inside. Because it's too risky.