Ir35, umberella companies and msc??

111beckstar111

Please could anyone explain to me what these are, and give as much undersanding detail as possible, I can't seem to get the grip of them.

Any information would be a great help as I have a interview tommorrow with a company which deals with these areas

Much appreciated!!

truecockney

I can't give you too much detail as I'm sure how they work either, but from what I have seen:

- MSC's appear to be "parent" companies that manage the accounts of contractorsthat companies employ under a self-employment contract
- Umbrella Companies should be deemed unlawful, unless the contractor has control over the umbrella companies accounts, but in effect is another way of trying to reduce their tax liability
- IR35 is a regulation to deem taxable income for these companies, and also what can be claimed against "profit" to reduce taxation

All in all, anyone operating through these deal with their own tax and national insurance contributions so their "employer" does not.

Good luck with your interview!

Anne Boleyn

Ir35

Hi

As far as I'm aware, IR35 started off just being an Inland Revenue notice but has grown into a far reaching piece of "legislation" that affects certain Limited companies.

As an example. Multinational Ltd wants to employ Joe Bloggs but says "we only deal with other companies, so you'll have to invoice us for your time through your own company". Joe Bloggs sets up his own company and invoices Multinational Ltd for the hours worked.

Where IR35 comes in; If it weren't for Joe Bloggs Ltd, to all intents and purposes Joe Bloggs would be an employee of Multinational Ltd. Therefore Multinational Ltd are not operating PAYE on him as an employee and deducting tax and NI and also not paying over employers NI as well.

If a client is caught by IR35 there are only a few expenses that can be claimed against the deemed income.

There is a lot of information about IR35 on the HMRC website.

This is my understanding of IR35.

Regards


PS: Apologies to anyone called Joe Bloggs or any companies called Multinational Ltd.

sloshed

Hi

Good luck for your interview. I have some information from a tax training course I have been on recently. If you want to send me a private messge or your e-mail I will let you have it.

111beckstar111

Brilliant thanks everyone, waiting to hear from them now. Your help is much appreciated thank you guys!!

Sloshed - my email is beckishaw1@msn.com, that would be extremely helpful - thank you !!!!