INSIDE IR35 income paid into LTD Comp?

bad advice from accountant meant I have to code inside ir35 into ltd company

Didn't find your answer?

Hi all..

Unforunately I relied on my ex-accountant for advise... i have a ltd comp and also 2 inside ir35 contracts.... (all are historically separate and have no relationship either clientbase or income stream).

The accountant advised me to channel the inside ir35 income into the separate business and pay myself from there.. however this, together with a lot of other issues has meant I need to attempt this myself.

How would you recommend reconciling already taxed inside ir35 income on a ltd company set of accounts (i.e. none taxable income) and the how would you reconcile the payment out to me (without it being taxed and/or classed as directors loan).

The reason also for querying is I am VAT registered and her little mis-hap cost me VAT charge which included the IR35 payments even though they have nothing to do with business activity or income.. (should have been through PAYE payments only).

 

any ideas would be great 

Replies (16)

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By williams lester accountants
27th Jan 2023 12:52

get a new accountant, you have no chance of doing it successfully yourself, it is complicated!

You should be able to find one here - https://www.accaglobal.com/an/en/member/find-an-accountant/find-firm.htm....

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Replying to williams lester accountants:
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By Tax Dragon
30th Jan 2023 05:47

Or go back to the old one. It's not obvious she did anything wrong (it's possible, but not obvious) - whereas it is obvious that the OP didn't (at the time of asking the question) come close to understanding the tax rules.

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By splreece1978
27th Jan 2023 13:16

Strange response for a forum??

Normal we use forums to find out information, not to be insulted.

If you dont know then please keep quiet.... if you know but can't be bothered to reply, then don't... if you don't think I am capable, then perhaps forward some useful links you have to content but caution me on attempting it myself......

Perhaps you need to take a moment and decide on whether you really are as arrogant as you come across and the potential damage that behaviour does to your own business?

To show how wrong you are I am a seasoned statistician and analyst whos contracts run from 800-1300 per day and they are fulltime.... always.... .... I am surely capable of learning new concepts and looking at your submitted accounts, my revenue (for my LTD on its own) exceeds 3x that of yours and while this isn't a school yard swinging contest, I didn't come on here insulting you... you did it, in public, in a professional domain.

Really frustrating to find really inexcusable behaviour from people in professions where they are HERE TO SERVE CLIENTS!!!

best maybe look to your trustpilot reviews and take a moment to reflect on your own expertise.

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Replying to splreece1978:
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By Hugo Fair
27th Jan 2023 13:54

I was about to offer you some useful info - not so much advice, as pointers to what you need to resolve ... since your posting contains errors (though whether of fact or of understanding I can't say at this remove).

BUT your wholly unnecessary and vitriolic attack on another member has changed my mind. Please take your needy, self-centred attitude somewhere else!

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Replying to splreece1978:
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By Leywood
27th Jan 2023 13:57

splreece1978 wrote:

Strange response for a forum??

Normal we use forums to find out information, not to be insulted.

If you dont know then please keep quiet.... if you know but can't be bothered to reply, then don't... if you don't think I am capable, then perhaps forward some useful links you have to content but caution me on attempting it myself......

Perhaps you need to take a moment and decide on whether you really are as arrogant as you come across and the potential damage that behaviour does to your own business?

To show how wrong you are I am a seasoned statistician and analyst whos contracts run from 800-1300 per day and they are fulltime.... always.... .... I am surely capable of learning new concepts and looking at your submitted accounts, my revenue (for my LTD on its own) exceeds 3x that of yours and while this isn't a school yard swinging contest, I didn't come on here insulting you... you did it, in public, in a professional domain.

Really frustrating to find really inexcusable behaviour from people in professions where they are HERE TO SERVE CLIENTS!!!

best maybe look to your trustpilot reviews and take a moment to reflect on your own expertise.

‘Here to serve clients’

You are not a client.

This forum is not here to provide free advice to business people, it is for Accountants to exchange information regarding technical matters.

This forum is also not here to train people in Accountancy and tax matters. If you want to learn I can suggest a good course.

Thanks (1)
Replying to splreece1978:
Danny Kent
By Viciuno
27th Jan 2023 13:57

splreece1978 wrote:
HERE TO SERVE CLIENTS!!!

Apologies for stating the obvious but, YOU BECOME A CLIENT BY PAYING FOR ADVICE NOT ASKING ON A FORUM.

Obviously, your "£1,300 per day" time is better spent learning about a complicated subject that you will not use often, and probably make a mess of (refer to your opening post for evidence). Feel free to do so by signing up here: https://yourfuture.accaglobal.com/global/en.html?ds_medium=cpc&gclid=EAI...

For the record, WLA give you the best advice.

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Replying to splreece1978:
Stepurhan
By stepurhan
27th Jan 2023 14:01

Not at all a strange response.

This is a forum for accountants, not the general public. Unless you are an accountant, this forum is not aimed at you.

This is also a complex question. A handful of links is not going to come close to giving you enough information to solve it yourself. Getting someone that understands the detail of the legislation already is good advice.

There is only one arrogant and insulting response in this thread and that is yours. Taking offence at the suggestion you need a professional is ludicrous. Telling people how they should respond to a query in a public forum is arrogance of the worst sort. As for showing us how wrong we are, what do your claims prove. You writing these things in a public forum does not make them true.

You have almost guaranteed no-one will even try to help you now. Better to stick to being a "data driven change advocate", bite the bullet and find someone with the knowledge you need to fix this problem before it gets worse.

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Replying to splreece1978:
By JCresswellTax
27th Jan 2023 14:03

splreece1978 wrote:

To show how wrong you are I am a seasoned statistician and analyst whos contracts run from 800-1300 per day and they are fulltime.... always....

Oooooohh cheese baguette!

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Replying to splreece1978:
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By paulwakefield1
27th Jan 2023 14:13

splreece1978 wrote:

....looking at your submitted accounts, my revenue (for my LTD on its own) exceeds 3x that of yours...

Intrigued to know where that information was obtained from.

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Replying to splreece1978:
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By SXGuy
27th Jan 2023 15:17

That was an extremely long triggered rant to someone who simply gave you the best answer you'll get.

Wonder what the odds were that was gonna happen. Maybe I'll ask you to calculate... For free of course.

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Replying to splreece1978:
By williams lester accountants
28th Jan 2023 07:47

splreece1978 wrote:

To show how wrong you are I am a seasoned statistician and analyst whos contracts run from 800-1300 per day and they are fulltime.... always.... .... I am surely capable of learning new concepts and looking at your submitted accounts, my revenue (for my LTD on its own) exceeds 3x that of yours and while this isn't a school yard swinging contest, I didn't come on here insulting you... you did it, in public, in a professional domain.

So, if we assume you mean fee is £1,050 per day (based on your day rate being between £800 & £1,300 per day), we can calculate you make sales of approx. £5,250 per week, and assuming you work 46 weeks a year (taking 6 weeks holiday), you annual income would be £241,500. So, you are estimating (using your skill as a statistician), that your income is 3x mine, meaning my turnover is £80,500!

I can assure you, you are so way off it is laughable, that figure wouldn't even get close to covering the business payroll, let alone other overheads and profit! Perhaps you can show us your workings, as you may get a few marks for showing how you did the calculation even though you got the wrong answer.

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Replying to splreece1978:
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By I'msorryIhaven'taclue
28th Jan 2023 18:02

splreece1978 wrote:

Really frustrating to find really inexcusable behaviour from people in professions where they are HERE TO SERVE CLIENTS!!!

In the immortal words of Germany's best ever Chancellor: "If I’m selling to you, I speak your language. If I’m buying, dann müssen Sie Deutsch sprechen!" Nur sagen.

No, no.. not that Chancellor you schmok! I'm quoting Herr Willy Brandt, the man who taught us, inter alia, how to perform in buy and sell modes.

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By adam.arca
28th Jan 2023 09:24

Typical Aweb thread involving needy poster: don’t get the answer they want, so have a rant and then disappear never to be heard from again.

What’s particularly egregious in this case is that the OP is, by their own account, a professional person in a knowledge-based activity charging top whack. Sound like some other job we might be aware of? Apparently not, accountants work for free.

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Replying to adam.arca:
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By splreece1978
28th Jan 2023 13:18

I appreciate the tone of the last post as it's calmed down the conversation but I part dont sit on forums 24 hrs per day...

So to school the others on what used to be standard.... Professionals don't work for free, but on sites where sharing information is standard I wouldn't give it a second thought in sharing insight or passing through recommendations considering the huge amount of fake and inaccurate sites available in Google.

What is frustrating is I didn't come on insulting or aggressive, I asked a questions n on a forum that has no gateway restrictions by profession....

It seems a lot of the contributors here are really that arrogant and clueless to think they are justified and have done nothing wrong... When did professional etiquette turn...

I don't particularly want to have a never end fight with so called professionals who actually use the site as a form of elevating their own image of themselves.

The alternative to the rude start could have actually got us somewhere interesting.....and from the looks of it a lot of people have this experience with this site.. so it's a toxic behaviour issue and perhaps a mis marketing of the site by admins.

If you want an accountant only forum.. then better tell the admins to lock down registration and change the copy to reflect you don't want random questions...

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Replying to splreece1978:
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By bigdave1971
28th Jan 2023 15:02

This issue here is that you came on this forum complaining about errors from your previous accountant relating to an area of tax that can be very complicated and so it's not inconceivable that your accountant did the best for you.

You then wanted a few nuggets of advice that would help you sort it out but if it was that simple your last accountant would have done it with her eyes closed.

When someone then gives you good advice in finding another accountant, not knocking your experience as he had no idea of your background or IQ level, you have a go at him and question his business acumen ... I wonder why you got so many people's backs up then.

This is not an area of tax where a quick answer would sort you out, it would need hours of evaluating and finding background information to get to the bottom of the facts.

So I would actually agree with the advice given, go and find another accountant (you can afford a good one apparently), take his/her advice and spend your time making money in your business rather than wasting time doing someone elses.

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Red Leader
By Red Leader
28th Jan 2023 14:37

Hi OP, this is part of a personal journey that you are on to find out the way to get the best from both professionals and indeed trades people.

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