PSC or Umbrella?

[Vaseline]

Hi all,

Thanks for your input. I've spent most of the day running through my options and i've decided that I will work through a PSC / Limited Company / Ltd / Owner Managed Company or whatever you want to call it.

I have however decided that although I want to be in full control of my company's finances, I'm still not sure if I'm working on a deemed employed or self employed basis. For that reason, I have decided to work 'Inside IR35' for this first contract and then perhaps see what happens in the new year.

By the way, take a look at this nifty self employment assessment tool - it really helps!

http://www.hmrc.gov.uk/calcs/esi.htm

Thanks again!

[Malvolio]

Originally Posted by Vaseline

By the way, take a look at this nifty self employment assessment tool - it really helps!

http://www.hmrc.gov.uk/calcs/esi.htm

Thanks again!

Ahhh bless....

As you learn more about freelancng in the UK, and more about IR35, the more you will learn to distrust anything that HMRC says about employment status. HMRC are not a source of expert assessment as to status or tax liability. Use independent professionals.

[Vaseline]

Originally Posted by Malvolio

Ahhh bless....

As you learn more about freelancng in the UK, and more about IR35, the more you will learn to distrust anything that HMRC says about employment status. HMRC are not a source of expert assessment as to status or tax liability. Use independent professionals.

I did notice somewhere today that they also offer a free IR35 contract review service. Are you suggesting that this is also some kind of underhand method of targeting freelancers?

PS - I've had a very intense day today and my head is hurting!

[Rob Crossland]

Originally Posted by Vaseline

I did notice somewhere today that they also offer a free IR35 contract review service. Are you suggesting that this is also some kind of underhand method of targeting freelancers?

PS - I've had a very intense day today and my head is hurting!

HMRC will never give a precise yes/no so always get good advice beforehand - there is no requirement to have HMRC review your contract/practices especially if you are deemed (through advice) to be "inside" ir35.

[Malvolio]

Originally Posted by Vaseline

I did notice somewhere today that they also offer a free IR35 contract review service. Are you suggesting that this is also some kind of underhand method of targeting freelancers?

PS - I've had a very intense day today and my head is hurting!

As Rob rightly says, get independent advice. HMRC's answers will invariably be the one that suits them best, not you and quite probably not reality either.

[The SMG]

Originally Posted by Rob Crossland

there is no requirement to have HMRC review your contract/practices especially if you are deemed (through advice) to be "inside" ir35.

Vaseline - take note, what Rob is saying is especially important. If you are planning to pay yourself using the deemed employment payment calculation you are, as you say, working on an Inside IR35 basis. I hate to say it but you're "doing the right thing" in the eyes of Hector.

There really is therefore no need to get your contract reviewed by anyone other than yourself. Unless of course you're worried about the T&Cs / Director liabilities etc, in which case I suggest letting a solicitor give it the four eyes.

Good luck
G

[Biff]

Originally Posted by The SMG

I suggest letting a solicitor give it the four eyes.

I concur. If you actually take the time to read an agency contract, you'll see that they very cleverly attempt to pass all liability down the chain to you or your limited company. It's like saying "Hi, thanks for agreeing to take this assignment, we'll now enjoy a 25% cut on any hours you work, you do the work, and we'll shaft you royally if anything goes wrong, OK?, just sign here....."

[Rob Crossland]

Originally Posted by Biff

I concur. If you actually take the time to read an agency contract, you'll see that they very cleverly attempt to pass all liability down the chain to you or your limited company. It's like saying "Hi, thanks for agreeing to take this assignment, we'll now enjoy a 25% cut on any hours you work, you do the work, and we'll shaft you royally if anything goes wrong, OK?, just sign here....."

Welcome to the world of the Umbrella Company :-)