Self employed working for one company..

[The Auctioneer]

Further to my earlier post I have beenable to clarify some points: The CSA only take income on which 'Income Tax & NIC are deductable' and regarding umbrella companies ' Fact: Being paid salary and dividends would be more financially beneficial to you, however you can only legally be paid in this way if your contract is IR35 friendly (outside IR35) and you are receiving payment through your own personal Limited Company, over which you have complete financial and administrative control. From 6th April 2007 any involvement from a third party in running a Limited Company (other than accountancy services) would place you under the scope of a Managed Service Company (MSC) If you receive your payments via a third party or your contract fails IR35 (inside IR35) and you are running your own Limited Company, you can only be paid through PAYE. Hope this helps but it would appear that IR35 has been further tightened up over the last 10 years.

 

[e77]

Further to my earlier post I have beenable to clarify some points: The CSA only take income on which 'Income Tax & NIC are deductable' and regarding umbrella companies ' Fact: Being paid salary and dividends would be more financially beneficial to you, however you can only legally be paid in this way if your contract is IR35 friendly (outside IR35) and you are receiving payment through your own personal Limited Company, over which you have complete financial and administrative control. From 6th April 2007 any involvement from a third party in running a Limited Company (other than accountancy services) would place you under the scope of a Managed Service Company (MSC) If you receive your payments via a third party or your contract fails IR35 (inside IR35) and you are running your own Limited Company, you can only be paid through PAYE. Hope this helps but it would appear that IR35 has been further tightened up over the last 10 years.

Seems a massive loophole to avoid CSA payments.

IR35 is under review at the moment although what the replacement will be is anyone's guess.

 

[thisistips]

There's definitely a tax issue (hmrc) with doing this for more than a year. You do need to see an accountant on this, but I reckon you'll need more than one client to make it work long term.