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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 9399
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Morning I am in the process of changing jobs with my new

Customer Question

Morning SamI am in the process of changing jobs with my new employer offering me a six month assignment as a contractor which may become permanent after six month My previous job was permanent PAYE paying a salary of £150,000 + Benefits in kind of 10% = £165,000I would like to know how this potentially effects my TAX threshold this year for 2020/21.PAYE = April to July @ 4 months
Limited = August to January @ 6 monthsI am not looking to increase my earnings, but based on a limited company contract assignment, would I need to increase my six month fee of £75,000 to offset IR35 tax rules?Appreciate your advice.Thanks
Dan
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Expert:  Sam replied 1 year ago.

Hi

You cannot simply just change to a contractor there are strict guidelines as to what is permissable not just within IR35 but also employment legisaltion

How will your services differ in the way they are provided from employment as it is now and will be

And why are you going limited you then pay your tax and National Insurance as well as the employers antional insurance have to file returns with companies HOuse and HMRC and then aslo complete your won self assessewtn so its far more expnesive with costs to whomever will take care of your admin

Plus is many cases the use of these persona service compnaies d fall fowl of the IR35 - as HMRC look and consider where it not for the limited company would this individual in fact be en employee

Perhaps you could advise further and comment on the above

Thanks

Sam