Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.
I cannot give you my phone number but if you want a telephone call it does incur an extra charge. Can you tell me how you wish to proceed?
I'm not clear on what you perceive the problem to be given what you have said. Can you elaborate a little please.
I'll type my answer and them you can decide whether you want a phone call.
There is nothing wrong with having your own company and working for another employer at the same time. You simply hand your P45 from your own company to your new employer who will use it to work out the tax and NIC you pay on your earnings at that company. The money your company is earning from contracting is the company's money and you will only have tax to pay if you take dividends from the company and that tax you will pay after the end of the tax year through your self-assessment tax return. I have clients who have run their own company's who have taken a job working for someone else whilst their own company is still active so its not uncommon at all. Many directors take dividends as opposed to salary. That is legitimate. If, however, you are concerned about IR35 compliance, you should consult your accountant. The fact that you have take another job changes nothing as far as your own company is concerned.
I hope this helps but let me know if you have any further questions.
Can you tell me whether your own company has more than one contracting client please.
There are some notes on IR35 here. It is far too complex a subject to go into any detail on here but the notes give you an idea as to what HMRC are looking for. Whether your own company would be caught by IR35 depends on your company's relationship with your contracting client. This is why I asked you at the beginning what you felt your problem was because if you think there is a problem simply because you are running a limited company as well as working as an employee for another company, I can tell you that there is no such problem. Your accountant will tell you that.
Hopefully, the contract between your company and the bank has been drawn up to be compliant with IR35 so as not to cause you a tax and NIC problem. However, it would be worth having an expert on IR35 compliant contracts take a look at it. There is some guidance here.
Hi.I'm just following up to find out if my answer helped or if you have any further questions.
I'll take a look if you upload it.
I would suggest you blank out names.
The tax and NIC deductions are fine. If you call the tax office I don't think they will tell you whether the deductions have bee paid over to them as the deductions they pay over won't only be for you if there are other employees. Even if they didn't, you will get credit so keep your payslips.
That's correct. The figures have to be reported on the payday. I've never tried it so all I can suggest is you call the tax office and ask them.
I'll look at the contract tomorrow.
You can't be held accountable for PAYE deductions not paid over to HMRC.
I have to say I'm not an expert on IR35 contracts or how they are put together but based on what I do know from seeing contracts and from what I've read in the past such as what is here I cannot see any problems.
Thanks and good luck.
You earn £3,750 per month before tax. I can only surmise that your gross pay to date is £7,350 because your first month was slightly less than a full month.