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Fixed term contract or limited company

1 reply

Popcorninapot · 22/05/2018 13:00

Hoping for some quick advice. I have been considering doing some contract/freelance work (I'm an accountant). I had planned to start looking into to best way to structure this once my youngest started nursery next month, however luckily something has come up that would work and I could start immediately.

It's effectively some project based finance work at a local company. Not sure how long it would last, could be one month, three months, six months. They would prefer not to bother putting me on the payroll and have asked me for a day rate and i can invoice them. However I'm concerned about IR35 and that setting this up is would be a lot of admin for me but no financial gain if I am within IR35.

I've had a scan through IR35 (it's been a long time since I've been involved in any tax accounting!) and there is definitely a risk I'd fall under but it's not clear cut (I'm not covering an existing role, it's very much individual projects, but they are things someone else in the Finance department could theoretically do, I'll just get them done much quicker without having a day job to do at the same time).

I know I need to research properly but this has all happened very quickly and I need to propose a structure that doesn't leave me out of pocket! Can anyone give me any help/pointers on the best route?

Thank you

OP posts:
QueenDoris · 25/05/2018 12:45

Setting up a ltd company is very easy, an accountant can do it for you and the overhead is pretty low

As for IR35, a lots depends on your contract and role. Is it outcome based (i.e. you deliver something specific for them), or do they 'direct and control' (i.e. tell you what to do each day). Is there the right of substitution? Are you subject to HR policies that would deem you an employee (outside of H&S, IT policies, etc)

If you think you fall inside IR35 you can go through an umbrella company, again very easy for sort out

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