How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Sam Your Own Question

Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13657
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
16196420
Type Your Tax Question Here...
Sam is online now

I'm a contractor with my own company who has been operating

Customer Question

I'm a contractor with my own company who has been operating outside IR35 for 15 years
I was recently urged to sign a form declaring that I am in IR35 to
ensure my contract wasn't cancelled on a government project.
I was told IR35 would only effect me if I paid myself in dividends (which I don't)
I've now found all subsistence payments, including London temp accommodation costs must
be paid out of the salary I pay myself
- rather than go through the company as expenses -
which is an impossibility
Could you tell me what my options are?
Submitted: 7 months ago.
Category: Tax
Expert:  Sam replied 7 months ago.
Hi Thanks for your question - I am Sam and I am one of the Uk tax experts here on Just Answer. The advsie you have been given is not strictly correct - any expenses payments you take (from the company) would have tot be presented to HMRC through form P11d (with the annual P11db return) - for HMRc to treat as taxable - but if they arise wholly and exclusively in the performance of your duties then you then apply a Section 226 claim to ask for them to mitigated from tax. Or you can pay (suffer) them from your salary and then make a claim for expenses, to state they are wholly and exclusively arising through the course of your duties as an employee (director) on your self assessment tax return. I am not sure why you state this is an impossibility - as one would assume you run a normal limited company as a contractor with many clients - or then you are at risk of falling foul of HMRC and the legal position of where it not for the limited company would you in fact be an employee (or subcontractor) to just one contractor. But you seem to indicate that HMRC have sanctioned you operating outside of IR35 (and this is why the recent project needed to you state you are in IR35 - as they would have concerns too it would seem) and you are wrong that your exclusion to pay yourself dividends in itself would affect you re IR35 - you have been misinformed - so you may wish to ask HMRC to review your position. Let me know fi I can assist furtehr re the expenses element ThanksSam

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Last | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    1772
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    464
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2596
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    268
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions