Should I go Ltd?


W

Willie Morgan

Hi All,

I posted the below message in uk.consultants. Someone said it would be
better to pose my question in this group. Perhaps someone can help
me-I would really appreciate it. I also found out that apparently if
you go through one of these companies instead of setting up your own,
that because you are not a Director but a shareholder of a company,
you fall outside the IR35 legislation. apparently because the hire
company is based offshore, you would fall outside section 134 of the
income and corporation taxes act 1998????

As i say, any help would be greatly appreciated.

Thanks
Will
=======================================================

Hello all,

I'm in a bit of a dilemma at the moment, I'm hoping someone with some
insight can help.

I've just started a contracting/temping role in Operations at an
investment bank. Of all the temps/contractors I have spoken to, 90% of
them have limited
companies set up to maximise their take home pay. I must say it looks
good and after some investigation I would like to do it.

To avoid setup and other admin costs, instead of forming my own
company, I will go through another organisation who handle this side
of things - basically I end up a shareholder of their company and they
take a percentage of my gross income. So far looking at 2 companies:
Freelance Professional Services and Safe Solutions (anyone have any
comments on these?).

Anyway, I know that whether you fall inside or outside IR35 is such a
grey area at the moment, what with case law for instance being set all
the time. I am not sure whether to risk it in case of a tax
investigation, but I must be the only contractor in banking like
this-everyone else seems to throw caution to the wind and take the
cash. And from what I have heard, being found inside IR35 during
investigations only happen to the big fish who are blatently milking
the system and they are so rare-is this really true?

Maybe I'm making a big fuss out of nothing-what do you think?

Some other information - I will probably be contracting with a single
company at a time. I will incur my own training costs, I do not
receive employee type benefits such as sick pay, holiday pay or
pension contributions. I have a contractor's security pass, I am not
entitled to attend employee social events.

I have looked into IR35 "protection" but this costs so much that it is
not worth it - also my contract is a standard agency contract. It is
not negotiable to be re-written to be IR35 "friendly" and indeed I do
not know if it already is. Again, getting an accountant or solicitor
to look over it is not worth the expense.



So what do you think? Am I panicking over nothing? I'd appreciate any
thoughts, especially from those in the same industry.

Thanks
Will
 
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