What should I do with new consultancy job

Options
2»

Comments

  • frogg
    frogg Posts: 25 Forumite
    Options
    Thanks cmattingly and motorguy! Food for thought. I’m pretty certain I fall foul of IR35 - certainly do on the HMRC test - and I’m not trying to dodge tax anyway. I’ll pay my fair share. I think it probably isn’t worth using QDOS as it is clear that there is only one employer and I can’t suggest a replacement for me.

    Basically, I’m happy to set up as a limited company and become an employee. If I can get 55-70% net, I’ll be good with that.

    Thanks for the great advice!
  • motorguy
    motorguy Posts: 22,473 Forumite
    Name Dropper First Anniversary First Post
    Options
    frogg wrote: »
    Thanks cmattingly and motorguy! Food for thought. I’m pretty certain I fall foul of IR35 - certainly do on the HMRC test - and I’m not trying to dodge tax anyway. I’ll pay my fair share. I think it probably isn’t worth using QDOS as it is clear that there is only one employer and I can’t suggest a replacement for me.

    Basically, I’m happy to set up as a limited company and become an employee. If I can get 55-70% net, I’ll be good with that.

    Thanks for the great advice!

    There should be some free QDOS tests or similar, to give you a better confirmation. Likewise, try that contractor forum i mentioned. Theres a wealth of info on there.

    Also, they recommend certain umbrella companies - not all are equal - so i'd take advice on that.

    Also, dont go for ones that tell you they can get you 90%+ of your day rate - they cant legitimately and HMRC will come knocking soon. Stick with a reputable big player - i think contractor umbrella (catchily named) are the ones that contractor forum recommend, but they have an approved list.
  • motorguy
    motorguy Posts: 22,473 Forumite
    Name Dropper First Anniversary First Post
    edited 11 January 2019 at 1:49PM
    Options
    trailingspouse wrote: »
    I'll modify my original advice - do lots of research, and then speak to an accountant...


    Don't make any decisions until you understand IR35, VAT, RTI, NI, dividends, and the responsibilities that come with running a limited company. Once you go down that route, you're playing with the big boys - and saying you didn't understand something is absolutely no excuse when the proverbial hits the fan. You'll need an accountant anyway if you're going to do that, so you might as well start shopping around now.

    No need to speak to an accountant if its inside IR35, which it appears to be.

    Also running a limited company isnt "playing with the big boys". Its something you spin up if you're in the O/P's position for tax or business relationship reasons then get your accountant to do your accounts for and do your returns. Simple enough done and purely a means to an end.
  • trailingspouse
    trailingspouse Posts: 4,035 Forumite
    First Anniversary First Post
    Options
    motorguy wrote: »
    No need to speak to an accountant if its inside IR35, which it appears to be.

    Also running a limited company isnt "playing with the big boys". Its something you spin up if you're in the O/P's position for tax or business relationship reasons then get your accountant to do your accounts for and do your returns. Simple enough done and purely a means to an end.
    But it comes with legal responsibilities that are yours to understand - you can't just say 'my accountant did it, I don't know anything about it.'
    No longer a spouse, or trailing, but MSE won't allow me to change my username...
  • motorguy
    motorguy Posts: 22,473 Forumite
    Name Dropper First Anniversary First Post
    Options
    trailingspouse wrote: »
    But it comes with legal responsibilities that are yours to understand - you can't just say 'my accountant did it, I don't know anything about it.'

    Hardly playing with the big boys in the grand scheme of things - and a moot point as the O/P is inside IR35 by the sounds of it.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards