Any IR35 experts out there????

After years of living/working around the world I really would love to come back to the UK.

However, the contract pay since I have left has fallen and the laws (IR35 etc) have changed so I need to do the sums.

If I am court by IR35 (probably will be from what I have read), can someone give an approx take home % that I can expect. Some say between 75 to 80% others say 68-73%.

Any advice is welcome.

[SoulKiss]

Originally Posted by Odin

After years of living/working around the world I really would love to come back to the UK.

However, the contract pay since I have left has fallen and the laws (IR35 etc) have changed so I need to do the sums.

If I am court by IR35 (probably will be from what I have read), can someone give an approx take home % that I can expect. Some say between 75 to 80% others say 68-73%.

Any advice is welcome.

I did some contacting the other year - the advice I got was go with an umbrella company.

Basically they do all the tax and whatnot - basically the contract is between them and whoever and you are just an "employee" - I even got details of the disciplinary procedure etc - guess it keeps them covered and legal.

I used Blue Genie - think it cost me £60/month - but no accountant fees etc and as far as I am aware, all the tax loopholes you can use are available through them - tho dodges are not

Thats SK. I like the idea of doing the tax myself. ......its only maths.

From what I have read if going limited makes more sense the longer you intend on doing that work. Hopefully I will be looking at least for 2 -3 years making the limited route a far better choice.

Any other limited who are inside IR 35 got any advice...?

[embee]

Not quite sure what your position is on this.

I work strictly as "self employed" which providing you can demonstrate that your working circumstances meet the requirements of this definition means that IR35 does not affect me.

As I understand it IR35 says, in essence, is that if your working terms and conditions mean you are a "deemed employee" then all the appropriate "employed person" NI/tax rules apply, regardless of what you might like to think and whether you are a limited co or under an umbrella is irrelevant. So it really depends on the T&C of your contract. Experts may correct me on this.

I work on the basis of short term (e.g. 3 month) contracts, always part time (because I do work for other people which pretty much satisfies the "self employed" bit on its own), and usually we try to make the working times irregular week by week, which effectively seals it. I submit monthly invoices and they pay on regular commercial terms.
The legal bods at the clients are happy they are in the clear, so I'm happy.

I am currently contracting and use an Umbrella Company - Crystal Umbrella. I do not fall under IR35 but I chose this route as I find it easier. I have set up a Ltd Company but have made it dormant.

You would be better off speaking to an accountant. If you find a decent one they will discuss with you, or may even provide you with a questionnaire, that will determine whether or not you fall in or out of IR35. You can then decide the best route to go which suits you.

[Luckypants]

Originally Posted by foxyinleather

I am currently contracting and use an Umbrella Company - Crystal Umbrella. I do not fall under IR35 but I chose this route as I find it easier. I have set up a Ltd Company but have made it dormant.

Foxy, do you fall outside of IR35 because you are an employee of Crystal Umbrella? In other words, if you worked in your current contract through your Ltd company would you still fall outside IR35?

My knowledge if IR35 is at least 8 years old, so I am probably unaware of any more recent clarifications and case law, but I believe the test is that your personal service company (aka one man band) should have several concurrent sources of income to be fall outside of IR35. I used to do two days for one client and 3 for another most weeks, mixing up days etc to give the appearance of irregular work. A three month or longer contract on the clients site, where you are directed and managed by the client's management would be deemed employment and so fall foul of IR35.

No doubt the situation has changed in recent years but that is my recollection of things.

Originally Posted by Luckypants

Foxy, do you fall outside of IR35 because you are an employee of Crystal Umbrella? In other words, if you worked in your current contract through your Ltd company would you still fall outside IR35?

I have chosen to fall inside IR35 being an employee of Crystal Umbrella. They sort out my insurances, taxes etc... and I get a pay statement every month. I just find it easier at the moment . It is my understanding that if you intend using an Umbrella Company then you will automatically fall inside IR35 regardless of whether or not you are outside IR35.

If I was under my current contract through my Ltd company I would fall outside IR35.

Originally Posted by Luckypants

My knowledge if IR35 is at least 8 years old, so I am probably unaware of any more recent clarifications and case law, but I believe the test is that your personal service company (aka one man band) should have several concurrent sources of income to be fall outside of IR35. I used to do two days for one client and 3 for another most weeks, mixing up days etc to give the appearance of irregular work. A three month or longer contract on the clients site, where you are directed and managed by the client's management would be deemed employment and so fall foul of IR35.

No doubt the situation has changed in recent years but that is my recollection of things.

You do not have to have several concurrent sources of income to fall outside of IR35 you can just have one as I do, although you can if you want.

Yes LP, if you are directed and managed by the clients management you would fall foul of IR35.

I would fall foul of the IR 35. Prob only 1 client and well over 3 months work. Closer to a fixed term contract but with less liability on there side.

I might just have to take the jump and see what happens

Originally Posted by Odin

I would fall foul of the IR 35. Prob only 1 client and well over 3 months work. Closer to a fixed term contract but with less liability on there side.

I might just have to take the jump and see what happens

You could use an Umbrella Company as an interim measure while you are looking into setting up your own Ltd Company.

Originally Posted by foxyinleather

You could use an Umbrella Company as an interim measure while you are looking into setting up your own Ltd Company.

I have set up my own company as the cost is small. It really comes down to me trying to get a grips with what my take home salary will be for a given daily rate.

And just when I was considering 2 contracts in the uk a long comes another possibility (just that at the moment) in Norway for twice the money.......well I ever get to ride my bike everyday again