| Advice re Self Employed/ Limited Company/ IR35 Advice Required 17:14 - Nov 27 with 2699 views | SW17_RRR |
Just finking of working for myself next year but wanted the usual sage like advice that's always available on here, anyone know the pro/cons of this craic? |  | | |  |
| Advice re Self Employed/ Limited Company/ IR35 Advice Required on 17:20 - Nov 27 with 2678 views | CamberleyR |
Which line of work are you in SW17? |  |
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| Advice re Self Employed/ Limited Company/ IR35 Advice Required on 17:22 - Nov 27 with 2676 views | SW17_RRR |
| Advice re Self Employed/ Limited Company/ IR35 Advice Required on 17:20 - Nov 27 by CamberleyR |
Which line of work are you in SW17? |
'Elf 'n Safety bruv =) | | | |
| Advice re Self Employed/ Limited Company/ IR35 Advice Required on 17:40 - Nov 27 with 2624 views | CamberleyR |
I presume you know something about the change in the IR35 rules from April this year? If not it's basically that it changed from the consultant making the determination of whether they were inside or outside of IR35 to the client they work for making it. If the client makes an incorrect determination, they and not the consultant are liable to HMRC for any tax deemed to be owed.
If the line of work you're in has lots of roles classified as outside of IR35 it is probably favourable to be paid via a limited company rather than umbrella company as this can be more tax efficient. Find yourself a good accountant who will most likely help you set the limited company up and give you advice on working through it (mine certainly did).
Up until April this year I'd worked via a limited company for eight years but due to my nature of work (IT in the government security cleared arena) the majority of these roles are now 'inside' so I now go via an umbrella. Feel free to PM if you wish. | |
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| Advice re Self Employed/ Limited Company/ IR35 Advice Required on 17:46 - Nov 27 with 2600 views | essextaxiboy |
My only experience is as a self employed driver for 20 yrs .
Find yourself a small accountant /bookeeper by recommendation if possible sooner rather than when your first set of accounts are due.
Let the Revenue know that you are going self employed and they will send you a big info pack .
Keep receipts for anything involved in setting things up.
Declare what you earn (remembering that other businesses and individuals have records of what they have paid you ) and sleep easy at night and relax when you open letters from HMRC .
Get and keep receipts for everything and keep good records from Day 1 , your accountant will charge more if you just give him a box file to sort out .
If you are thinking of moving remortgaging or obtaining credit do it before you give up a regular salary.
IMO dont try to be to clever with Limited Co until you really need to ,keep it small and easy to manage with a minimum of admin .
You will work harder but answer to no one but the bloke in the mirror . |  | | |
| Advice re Self Employed/ Limited Company/ IR35 Advice Required on 18:13 - Nov 27 with 2539 views | PunteR |
For self employment my advise is as follows.
Open another bank account for all your income and work related outgoings. Easier to keep track of everything. No more paper receipts.
April 4 is the start of the tax year not January 1st. Worth keeping that in mind.
Set up a monthly affordable direct debit to HMRC for tax, this way your tax bill won't be huge at the end of the year.
Keep a record of all your invoices.
Get a good accountant.
That's all I can think of atm. |  |
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| Advice re Self Employed/ Limited Company/ IR35 Advice Required on 18:52 - Nov 27 with 2464 views | hantssi |
I was Ltd. Co. for 16 years but they’ve really clamped down on IR35 and 1 of the companies I did a lot of work for felt I fell foul of it and weren’t prepared to take the risk (myself and my accountant didn’t agree but as pointed out above it’s their risk) so I’ve gone back PAYE.
With Corp Tax going up next year and with benefits I’m really no worse off.
Bear in mind you’ll have to make your own pension contributions and no paid holidays or sick pay. |  | | |
| Advice re Self Employed/ Limited Company/ IR35 Advice Required on 19:32 - Nov 27 with 2405 views | lightwaterhoop |
Always demand payment in cash and increase the price of your work halfway through doing the job. | | | |
| Advice re Self Employed/ Limited Company/ IR35 Advice Required on 20:42 - Nov 27 with 2323 views | derbyhoop |
Worked under a Limited Company in IT for about 10 years in 2 separate spells.
However, IR35 rules have got much tighter and many companies won't employ freelance people unless they are on PAYE.
You are supposed to have multiple contracts and provide all your own kit to ensure you don't fall foul of IR35.
Keep really good records of income, outgoings and expenses.
Speak to an accountant before you start and he will guide you through the processes. |  |
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| Advice re Self Employed/ Limited Company/ IR35 Advice Required on 20:52 - Nov 27 with 2311 views | BrianMcCarthy |
Based in Ireland, so can't advise on legislation and rules.
But got some excellent advice on here before I went self-employed. In no particular order:
1) Keep strict hours in your office. Never do overtime. Otherwise your home life will get overrun.
2) Keep two bank accounts for your business - one of them should hold all the tax (VAT and income) you owe as soon as you're paid. That way you never get surprised by the Revnue.
3) Your accountant is your best friend.
4) If in doubt, be advised by a solicitor.
5) Remember that you are the Boss.
6) Relax and enjoy. |  |
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| Advice re Self Employed/ Limited Company/ IR35 Advice Required on 21:32 - Nov 27 with 2280 views | E17hoop |
All good advice here.
Many contracting organisations don't understand how to commission work outside IR35 and quote work based on day rates that makes the work more likely to fall inside.
To commission work on a piece basis is more complex and you need to have a good relationship with the organisation; I've just agreed a fee for some work that is a whole piece with milestones. It's just coincidental the stop points equate to days and the amounts I'm charging will be multipliers of my day rate. |  |
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| Advice re Self Employed/ Limited Company/ IR35 Advice Required on 22:36 - Nov 27 with 2208 views | Boston |
| Advice re Self Employed/ Limited Company/ IR35 Advice Required on 21:32 - Nov 27 by E17hoop |
All good advice here.
Many contracting organisations don't understand how to commission work outside IR35 and quote work based on day rates that makes the work more likely to fall inside.
To commission work on a piece basis is more complex and you need to have a good relationship with the organisation; I've just agreed a fee for some work that is a whole piece with milestones. It's just coincidental the stop points equate to days and the amounts I'm charging will be multipliers of my day rate. |
Two sets of books
Safe Deposit Boxes
An account in the Cayman Islands
At least ten grand under the mattress
Multiple passports. [Post edited 27 Nov 2021 22:37]
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| Advice re Self Employed/ Limited Company/ IR35 Advice Required on 07:05 - Nov 28 with 2083 views | SimplyNico |
| Advice re Self Employed/ Limited Company/ IR35 Advice Required on 17:40 - Nov 27 by CamberleyR |
I presume you know something about the change in the IR35 rules from April this year? If not it's basically that it changed from the consultant making the determination of whether they were inside or outside of IR35 to the client they work for making it. If the client makes an incorrect determination, they and not the consultant are liable to HMRC for any tax deemed to be owed.
If the line of work you're in has lots of roles classified as outside of IR35 it is probably favourable to be paid via a limited company rather than umbrella company as this can be more tax efficient. Find yourself a good accountant who will most likely help you set the limited company up and give you advice on working through it (mine certainly did).
Up until April this year I'd worked via a limited company for eight years but due to my nature of work (IT in the government security cleared arena) the majority of these roles are now 'inside' so I now go via an umbrella. Feel free to PM if you wish. |
On the point "I presume you know something about the change in the IR35 rules from April this year? If not it's basically that it changed from the consultant making the determination of whether they were inside or outside of IR35 to the client they work for making it. If the client makes an incorrect determination, they and not the consultant are liable to HMRC for any tax deemed to be owed."
If you are dealing with any organisation of size, which you probably will be with H&S, their commercial terms will almost certainly have a tax indemnity which passes the tax risk through to you.
Also, if you are working for just one client you might want to do a HMRC CEST test - https://www.gov.uk/guidance/check-employment-status-for-tax . Your client may insist on it as it covers their bax risk with HMRC. | | | |
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