Simon1883, post: 206559, member: 31276 a écrit : Afternoon all,
Been looking into freelancing for a good while now. Just recently I was offered a chance which I have all but accepted. The question I have surrounds the whole IR35 thingy and ltd companies.. I have been tols that the role I am undertaking is inside IR35 and that is that. However, I have more opportunities to in other contracts as well as this one - although this one to begin with, will be the main source of income. Can I/ is it worth setting up a ltd and using it to deal with everything, including the IR35 income so that the other opportunities can be part of the ltd company and thus more efficient in terms of drawing an income from or writing off expenses?
All opinions welcome and thanks in advance.
Hi Simon, the short answer is...it depends! Do you work in the private or public sector, for instance? How likely are you to carry out other contracts and will they be inside or outside IR35? What is your projected turnover and what expenses will you suffer? Lots of questions, some of which aren't for public discussion obviously, but you can DM me if you like and I'll be happy to discuss further.
I can help with the tax side of things, but I'm not sure on what due diligence you ought to do on this potential client (clearly you need to do some checks to ensure that everything appears legit.). Is the potential client a company or an individual? If it's the former, they should be able to provide you with a company number, etc.
Noor2018, post: 206542, member: 31038 a écrit : Hello Ka,
You might find it helpful to talk to a freelancer accountant.
I can confirm that introducing capital is fine; it will be credited to the Director's Loan Account and can be reimbursed later once the business is in receipt of cash. 🙂
My name is Gordie and I'm an Associate Partner and qualified Chartered Accountant at Danbro Accounting.
From what you've said, your working practices would *suggest* that you're inside IR35.
IR35 is as relevant in the private sector as it is in the public sector. The difference, and I think the source of your confusion, is that in the private sector IR35 is self-assessed (whereas in the public sector it is the responsibility of the end client to assess your IR35 status). This means that it is for you, as someone working in the private sector, to determine whether or not IR35 applies.
If you have an accountant, he or she should be able to assist you. When I speak to a new client who is an independent professional IR35 is at the top of my list of discussion points because it dictates what tax planning opportunities are available to us.
If you're inside IR35, the company income is turned into what's known as a "deemed salary". Again, your accountant can assist with this.
