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Looking for any guidance......I'm sure I'm not the only one

Didn't find your answer?

We are soon to accept a private sector contract that falls within IR35....client agrees, we agree, can't fight it....starts post Apr 2020.

Just a couple of questions that I can't find answers to online, and our accountant is also unclear. Reaching out for any articles that may be of use.

1) Our Ltd Co. has numerous other contracts that DON'T fall within IR35. Are we able to run our Ltd Co. accounts as we have done before in relation to our business expenses? On the assumption that expenses relating to the IR35 contract cannot be claimed, how do we best account for overheads such as accountancy and office rent? Percentage based on turnover ditribution?? 

2) If we decided to run the IR35 contract through a separate Ltd Co (hypothetically), and were signed up for Flat Rate VAT, would the Flat Rate savings be classed as Company Turnover? On this basis, could we offset any business overhead expenses against this turnover?

3) From the guidance online so far, it seems that the cost of overheads would be borne personally if there was no other Ltd Co. income other than the IR35 contract. When submitting a personal self-assessment for the IR35 income (P60 provided by the decision making client), could these costs be including as employment expenses and reduce the personal liability?

Anyone clear on what we can expect come April 2020?

Many thanks,

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By lesley.barnes
13th Jan 2020 10:54

You need to ask your accountant these questions, they are too complicated to discuss on an online forum. Your accountant knows your business and your personal circumstances and will need to tailor the advice to these. You say your accountant is unclear perhaps you need to change accountants?

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