The Freelance Thread (Contractor, IR35)

Posted on
Page
of 8
  • Mrs G has a new job contract comming up and will be regarded as self self employed but may have to be a limites company has any one gone through an umbrella/agency thing so you don't have to actually be a limited Co???

  • Yes. I am with an umbrella company currently.

  • How are you finding it and did you look through loads? been researching but it's the 1st time she has done this so is worried about what going rate is and not wanting to get fleeced.

  • There's a couple of big ones; Parasol, Giant etc. Their fees are reasonably transparent and amount to an admin charge for effectively turning your billing in to PAYE.

    Their time sheeting systems are clunky as fuck but comes with the territory.

  • Thanks that's great it's ll brand new so a bit odd. And tax and stuff I find confusing at the best of times

  • Also with an umbrella company, fees/rates are reasonable and they have been helpful in responding to questions

  • Thanks Ted. We will dive in and start asking questions 👍

  • I’m with Parasol at the moment. They seem to have a direct agreement with my agency (Hays) so I get paid every week with a payslip generated same day (They say payroll is 4 times a day) and paid to me same day without extra charge. Their ‘margin’ is £28. I also don’t have to do a timesheet. First time I’ve used an umbrella since 2008. Their online portal is ok to use.

  • Cool I'll direct Mrs G to have a check on parasol. 👍

  • I use Parasol. Colleagues use Giant, which is apparently significantly cheaper for them, but may have been a special offer. I have found Parasol pretty good, the people on the helpline are knowledgeable and efficient. More on how umbrellas work here: https://www.contractoruk.com/umbrella_co­mpany

  • Thanks v helpful hadn't seen that👍👍👍👍

  • I'm about to jump into the world of freelance again. I need to set up a ltd co and buy a new laptop. Can I set up the company first and immediately buy the laptop as a business expense? As I won't yet have any cash in the business bank account, could transfer from my personal account for the short term until my first invoices are paid?

  • Can I set up the company first and immediately buy the laptop as a business expense?

    Yes

    Also if you are going for flat rate VAT, you get first quarter where you can reclaim VAT on business purchases (this was the case when I set up 6 years ago, do check).

    could transfer from my personal account for the short term until my first invoices are paid?

    You can or you can pay from your personal card and record it as that, so the company owes you (the director) that money.

  • Great, thanks. I was on the flat rate scheme last time I freelanced and I think the same rules still apply. You can only claim the VAT on a single purchase if it's over £2k.

    Do you use an online accountant or bricks and morter?

  • Do you use an online accountant or bricks and morter?

    Online; crunch, I can send referral code we both get discounts :)

  • Is IR35 gonna happen this time round? My current client is making noises about a CEST assessment.

  • Is IR35 gonna happen this time round?

  • My insurer, the agency, the client, and my accountant all seem to think so. I'm switching to FTC and the client is going to pay the additional taxes.

  • client is going to pay the additional taxes

    That's a sweet a deal as can be hoped for

  • Exactly. This seems totally industry and contract specific.

    I've been a contractor for 15+ years. My current contract assured me I was outside IR35 and produced the paperwork from their side that informed that decision.

    Not that the whole thing is not screwed but I do think you need to ask the questions / get the client to address it

  • This is still correct.

  • Thanks. Not sure I actually need to spend £2k though!

  • As long as you need to spend over £1666.67 then you need to spend over 2k though.

  • Flat rate Vat is pretty much pointless since it was changed a few years back. You should just go onto the standard rate.

  • Doesn't it depend on your business? Eg I'll be classed as advertising which currently attracts a flat rate of 11%

  • Post a reply
    • Bold
    • Italics
    • Link
    • Image
    • List
    • Quote
    • code
    • Preview
About

The Freelance Thread (Contractor, IR35)

Posted by Avatar for amey @amey

Actions