OT - IT and IR35

[WLeg]

I've finally found myself a contract (work).......Having been made redundant a fewmonths ago...

can anyone give me any tips about getting around IR35 ? - am I best using the Agency's (Computer Futures) umbrella company or using my own limited co (but I think this then means I have to pay Company Ni as well as Personal NI contributions) ?

 

[scotth_uk]

Careful - some people don't like tax dodgers. You may not get a warm response when asking for advice on how to get around the law!

 

[craigyb]

it's not tax dodging, it's just using the rules to your advantage.

I think that if I had the choice again, I would not like to be a limited company director. I've had the role for 11 years and I'm thoroughly fed up of being shafted by the IR/accountants.

Usse aan umbrella company, but don't use compuer futures if you can help it, they have a very very bad reputation. I've had dealings with them over the years and they've always tried to screw me.

Progressive are a sister company of there's so avoid them if you can.

The IR are suppossed to be bringing in NI on dividends soon, so that will mean avoiding IR35 is pointless.

Craig

 

[mapleleaf]

I'd agree.. USe an Umbrella Company. Dont know any in the IT sector, but for Construction Personnel we deal with Sterling, who are based in Warrington, Cheshire.

Rumour has it that Gordon Brown has plans to close more loopholes in his next budget - I heard this one was a target, but who knows.

 

[UKEvo]

Shoot an email asking for info to Tony Harris at JSA Group/Contract IT: [email protected]

I'd been with them for three years. No IR35 to worry about, get paid every week, fornight or month however you want. Lots of benefits like claiming mileage and VAT/Tax free computers etc, Car leasing, Mortgage help etc. I only stopped as I have taken a permanent job.

PM me and I can give you more info.

HTH

 

[Sp!ke]

The only problem with an umbrella company is that you appear to be an employee in the eyes of the taxman.

This means that you cannot offset any of the expenses or claim any of the tax breaks that you would normally be able to claim as a self employed worker.

When I went contracting under an umbrella company, I worked out that just over 50% of gross went on tax, NI and fees. Sickening it was!

However, if your like me and are terrible when it comes to sorting out paperwork etc, or you dont intend to be contracting too long then using an umbrella company is the way to go.

 

[UKEvo]

I was able to claim petrol, lunch, stationery, dinner if after hours work and a number of other things. But yeah I agree with what you are saying in effect, you could end up making less money going through an umbrella company that what you were making as a full time employee (!). Unfortunately it seems that the good old days of making a mint by contracting are long gone - in this country at least.

 

[Kinky]

You'll find tons of useful info here (similiar questions to yourself too): http://www.pistonheads.com/gassing/forum.asp?f=92&h=0