RE: IR35

r-more — Fri, 20 Jan 2017 18:13:38 GMT

Being a Ltad company can be beneficial (in theory!) in terms of taxation, over an umbrella companybut usually only when your profit reaches a certain level. However, the problem with locuming or any form of temporary/contract working is that whilst on paper it may be self-employment, in reality the relationship between worker and the employer may be deemed to be that of full employee in the eyes of HMRC. This is what HMRC call disguised employment - it is employment in terms of the working relationship, but the contract has been structured so that it looks like self employment on paper = less tax and NIC paid.

IR 35 was introduced to avoid issues of disguised employment, you'll need to examine the working relationship between you and the employer. The division between self-employment and employment is usually based on aspects of control and direction over the work you do, when and where you do it, and whether you use you own facilities/equipment. It may be worth engaging an accountant who is specialised in dealing with tax for locums and contractors, that way they can fully review the facts of the working relationship.

RE: IR35

Alison Clare Hickman — Fri, 20 Jan 2017 11:37:40 GMT

https://www.gov.uk/guidance/ir35-find-out-if-it-applies

Have a read and ask your accountant if in doubt. It's a specialist area and I wouldn't want to mis-advise.

hth (some?)

Ali h