Discussion
Not sure if this should be here or on Jobs & Employment...
I do some consulting work for varous clients, through a Ltd Co. Advising on strategy, coaching, project mgt. That kind of thing.
I've been asked to take on a project by a new client who are insisting that the cpnteact is 'inside IR35'.
This isn't something I'm familiar with. In essence, is it just that I'll need to pay tax and NI as if I were an employee? How does this work if I invoice through my Ltd co (not an umbrella), from which I pay income tax and NI anyway? Do I just increase my day rate by 40%?
I do some consulting work for varous clients, through a Ltd Co. Advising on strategy, coaching, project mgt. That kind of thing.
I've been asked to take on a project by a new client who are insisting that the cpnteact is 'inside IR35'.
This isn't something I'm familiar with. In essence, is it just that I'll need to pay tax and NI as if I were an employee? How does this work if I invoice through my Ltd co (not an umbrella), from which I pay income tax and NI anyway? Do I just increase my day rate by 40%?
robinessex said:
Was contracting for 25 yrs. YOU NEED AN ACCOUNTANT. Don't upset HMRC, they never forget you if you get on the wrong side of them. IR 35 was introduced by a Labour government. The Conservatives promised in an election manifesto to abolish it, but it went the same way almost political manifesto promises, complete b
ks
Thank you. I HAVE AN ACCOUNTANT. I was an accountant. I am not a contractor. ksOk, let's clarify a few things. I do not operate as a 'one man band'. I have, in the past, started, purchased and sold around ten companies, and employed up to 60 people at any one time. I currently own two online retail companies, and alongside those, I provide some of my time to SMEs, offering advice on strategy, coaching owners & managers and running small projects on their behalf.
I don't 'contract', and I never have. Consequently, IR35 has remained outside my sphere of reference until now. This particular 'engagement' is neither full time, not permanent, and yet the client insists it's within IR35.
As I think I have explained, I have never dealt with IR35 before. This is because It's never applied to me, and not because I am an idiot.
So thank you for the information given, but not for the patronising responses, which seemingly arose from blind assumptions about my circumstances, none of which I had encourgaed.
I don't 'contract', and I never have. Consequently, IR35 has remained outside my sphere of reference until now. This particular 'engagement' is neither full time, not permanent, and yet the client insists it's within IR35.
As I think I have explained, I have never dealt with IR35 before. This is because It's never applied to me, and not because I am an idiot.
So thank you for the information given, but not for the patronising responses, which seemingly arose from blind assumptions about my circumstances, none of which I had encourgaed.
I'm not particulary bothered about the project. It's a bigger company than I usually work with, and I am most definitely not 'corporate' minded. I'm not entirely sure what they think I'll be adding. They got my name through another client, but I don't think they've spent much time thinking about what they need.
We've only had a very brief conversation so far, so I'll up my day rate by 50%. If they bite, the fair enough. If not, no worries.
We've only had a very brief conversation so far, so I'll up my day rate by 50%. If they bite, the fair enough. If not, no worries.
The Selfish Gene said:
isn't there some risk if you take this and accept you are inside IR35 then all of your other work will be considered that too?
A day each week attending a board meeting (I'm not a director), or a few days each month steering an ERP project, or a warehouse reorganisation isn't really a risk, no.
Mr Pointy said:
Doofus said:
I do some consulting work for varous clients, through a Ltd Co. Advising on strategy, coaching, project mgt. That kind of thing.
Doofus said:
I don't 'contract', and I never have.
I'm a bit puzzled: you do this work & presumably invoice via your limited company. Why do you think you aren't a contractor?bigandclever said:
You’re a braver man than I, doing B2B work without a contract.
So be it. I appreciate the advice and information that's been provided here, but I'm getting a bit tired of needing to repeatedly justify what I do and how I do it.I have been in business as an owner & director for 20+ years. I have a firm of accountants with whom I have worked for more than 10. I have a firm of solicitors who have managed my busniess and personal affairs for a dozen years. They know what they are doing, and so do I (except when it comes to IR35).
I asked about IR35 on here because I hoped to get a quick and easy answer without interrupting somebody's day (given that they'd be on the PH forum anyway, and could choose not to respond if they were busy). I suspect that may have been a mistake.
FFS!
I advise. I don't [i]do[/]
Of course I have agreements with my clients. I know I said otherwise, but I was trying to make a distinction between working under a contract and 'contracting'.
Having said which, it seems to matter not what one says in a post such as this because people will conclude whatever they wish, and advice/condescend as they see fit.
I advise. I don't [i]do[/]
Of course I have agreements with my clients. I know I said otherwise, but I was trying to make a distinction between working under a contract and 'contracting'.
Having said which, it seems to matter not what one says in a post such as this because people will conclude whatever they wish, and advice/condescend as they see fit.
Eric Mc said:
Sorry - only trying to help.
You have a contract - whatever you may or may not think. Whether the contract is caught by IR35 is
a) not in the power of the hirer to decide (under current rules)
b) based on the way you work with the hirer
That is it, plain and simple.
If they insist that IR35 applies, how would they know that you were applying the IR35 calculations in your company accounts and company tax returns? They have no right to see these workings and they have no power to force you to carry them out.
All you have to do is bill them, charge them VAT if appropriate, and they pay you what you have billed. They have no further involvement in your affairs.
That makes sense, thank you You have a contract - whatever you may or may not think. Whether the contract is caught by IR35 is
a) not in the power of the hirer to decide (under current rules)
b) based on the way you work with the hirer
That is it, plain and simple.
If they insist that IR35 applies, how would they know that you were applying the IR35 calculations in your company accounts and company tax returns? They have no right to see these workings and they have no power to force you to carry them out.
All you have to do is bill them, charge them VAT if appropriate, and they pay you what you have billed. They have no further involvement in your affairs.
However, I've decided I'm not the manfor the job. This is because I know somebody better suited to thier needs and not, as many on here would suggest, because I am a total f
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