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Good IR35 Advice

Good IR35 Advice It's very important for UK contractors to get good IR35 advice. If they get it wrong they could end up being investigated for years and having to stump up tens of thousands of pounds of back tax. Normally contractors who are caugt by IR35, or who are not sure if they are inside IR35 or not, will use a contractor umbrella company. Personal Service Companies for Contractors Those who are sure they are outside IR35 will normally use a limited company, or personal service company, as the Government calls one man band companies. Limited company contractors will normally pay aorund £10,000 a year less in tax and national insurance contributions than umbrella company contractors. This can mount up over the years. Sometimes contractors get it wrong and use an umbrella company when they are really outside IR35. This is an expensive choice for them. [caption id="attachment_878" align="alignnone" width="218"] Contractor Umbrella Companies which avoid IR35 tax[/caption] Caught by IR35 but Using Personal Service Company Also, sometimes it happens the other way around. Sometimes contractors are inside IR35 but still use personal service companies. That's OK if they don't get caught. However, if they do, they could be under an IR35 investigation for years and end up paying tens of thousands of pounds in back tax. That's why it is necessary to get good IR35 advice before you start. [caption id="attachment_910" align="alignnone" width="208"] Getting Good IR35 Advice before you start[/caption]

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