Operating in IR35

[craig511]

So let’s keep this simple for me .

Currently i am a LTD company and operate outside IR35, so all good .

Come 5th April I will pick up a new contract and it will have been deemed by my new customer that it sits inside IR35. Fine . The day rate has been increased by say 20% to offset increase in tax .

For me personally , what difference will there be apart from paying more tax ? What needs to change ? I don’t rant to gin through an umbrella company as why would i give someone a cut of my cash ? My new customer is happy to pay me more per day so as above , what’s different for me ? Can i still trade through my current LTD company ? Can i still claim for expenses?

Thanks all

[craig511]

Thanks for your reply .

But what’s the least worse option , orating through my own company or through some 3rd party umbrella .
What am i missing here as to me, an umbrella company is even worse as there is their cost to consider too.

[craig511]

Thank you all ,

Yes i do it all through my accountant now anyway .

Ok so it seems either go through payroll or do it myself . I see now reason to give an umbrella company a cut for no added value .

IMO

[craig511]

So my understanding is this .

You’re right , i can go on payroll however to get say 80k take home pay wouldn’t happen for me . They would have to make me a senior manager/director as their internal grade system just wouldn’t allow it .

Doing through my own company they will adjust my day rate so that at the end of the day i still take home 80k after tax . I’m still on their books as a contractor for all intents and purposes . I just pay more tax . They can drop me with 5 days notice etc

[craig511]

Thanks Mr Pointy, and yes i hear your loud and clear re your last point !