Devil's Refugee

Are there any contractors out there who use these IR35-proof companies (not an umbrella company) ?

With IR35 cases being lost left right and centre, and now the IR saying that your spouse is not a viable Co Seccy to receive dividends, I think it's time to make the switch.

Does anyone have experiences to share, good or bad ??

Cheers
T

krankyd

Hi,

Don't use the umbrella companies, but I disagree that IR35 cases are being lost 'left right and center'.

With proper accountancy and actual business practices, there is no way you can fall under IR35. In fact, several accountants offer packages where they vet your contracts. If they are happy thay they are outside of IR35, they will gaurantee that if it goes to court and the lose, they will pay the tax themselves.


It's worth it for 100 quid per contract. Seeing as you're likely to save about 10% per year...

Sheepsplitter

There is no such thing as an IR35 proof company or contract.
It's too subjective and not tied down enough.
Even the IR can't decide on some sensible and simple rules to allow people to decide for themselves if they are in or out.
The only fairly safe way is to make sure you have a contract that reflects reality, obtain a substitution clause (this is the big one!!), bill by the day not the hour, don't expect to have guaranteed work (Mutuality of Obligation), operate like a real company (i.e VAT, insurance, headed paper etc etc).

philgr

Not sure about the IR35 cases being lost left right and center!!

I have a Ltd Company and have been operating this way for the last 6 years, my accountant keeps me on the straight and narrow, i contract my services out to a major local employer.

Several work mates use the umbrella company again with no apparent problems,
All the scare stories have been doing the rounds for a long time now and nothing has came to light.

If you talk to a good accountant there are lots of things you can do to take yourself out of the IR35 frame.