The Freelance Thread (Contractor, IR35)

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  • The rules around IR35 are so vague and open to interpretation I don’t think there is such thing as a definitive answer. HMRC has recently been defeated in the courts and told it is interpreting its own rules incorrectly.

    In effect it’s whether you are in reality an employee (Employment rights, wage the same, working practice the same, etc) or a dispensable resource used on an ad hoc basis by your client/s. If you don’t have the benefits of being an employee why would you go inside IR35.

  • If you don’t have the benefits of being an employee why would you go inside IR35.

    Because you recognise you are on the wrong end of an unequal power relationship.

  • Anyone ever filed accounts as a micro-entity because FUCK ME do I feel thick trying to attempt it.

  • I've always winged it. Seems to work ok.

  • for called up share capital not paid I just put a quid because I (the only shareholder) have one share at a quid, and I didn't pay my company for it - ok?

    then i've just left of all the stuff about deferred and accrued income for simplicity, and i've put total fixed assets at 0 (no property or machinery etc.) total current assets = my company's bank balance on the final day of the accounting period.

    liabilities are 0

    but the autocalculate box for Total net assets (liabilities) is just showing as 1, which i don't get.

    and i assume Capital and reserves should be the same as my bank balance on the final day of the accounting period?

  • Anyone got suggestions for a liquidator? Should be pretty straightforward, no debts, yada yada.

    Or could I just leave the company around and do something else with its £s? Buy a villa in Spain, cocaine and midgets, new titanium gooch, etc.

  • I used MVL Online. Very straightforward.
    Similar state. No debts, just me as a director, nothing fancy anywhere.

    Timelines for me were
    instructed them in Feb
    first monies to me a month later (about 80% of the total)
    winding up etc, notifying HMRC, waiting for anyone to raise claims/disputes etc took a further 5 months, and I got the last of the monies in september

    5/7 would recommend etc

  • the more i research this, the less sure i become. i'm going to need an accountant, I think

  • Do you know what they charged? Was it a fixed fee?

  • Exactly what they said it should be

    995 +vat fees
    227.85 +vat statutory advertising
    And £168 statutory bond

    Nothing hidden or extras that appeared at the end

  • Assets and liabilities need to balance. You have £1 share capital, which is a liability (rather assets = liabilities + equity).

    Usually, this would be paid up - i.e an asset of £1 in cash.

    As it's not paid, there is asset of the £1 debt.

    (A quick google suggests that you can have an exolicit balance sheet item for called up share capital not paid - the £1 in this case)


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The Freelance Thread (Contractor, IR35)

Posted by Avatar for amey @amey