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In the UK you can operate as a ltd company all you like, but it won’t make a jot of difference if HMRC decides that IR35 applies to your role. An “employer” ca
by pja 3y ago
In the UK you can operate as a ltd company all you like, but it won’t make a jot of difference if HMRC decides that IR35 applies to your role.
An “employer” can structure the contract to avoid IR35, but that’s precisely my point - now the “employer” needs local legal knowledge to maintain an arms length contractual relationship. (HMRC has also made the “employer” liable for IR35 problems: you can’t just punt the legal liability onto the “employee” and forget about it anymore.)
- mejutoco 3y agoI am not so familiar with the uk. It seems you are right. From what I read it is possible, but you have a less beneficial arrangement, since you pay more tax. > You’ll need to ensure you pay the correct PAYE tax and National Insurance (NI) for any contract which is inside IR35 because you are, in the eyes of HMRC, an employee. You can, however, manage this through your limited company. https://www.crunch.co.uk/knowledge-tax/can-ir35-contractors-still-work-through-a-limited-company https://www.crunch.co.uk/knowledge-tax/can-ir35-contractors-... I wonder if 2 companies is enough to bypass this.