The 123 Guides

IR35 - Detailed Guide P2

Business Structure Review

The 123 Way

What is included as standard for a fixed fee of £65.00 per month:

Business structure review - are you contracting in the best way for your needs.

- Free bookkeeping software

- Year end accounts

- Corporation tax return (Ltd)

- Payroll bureau

- Dividend administration (Ltd)

- HMRC compliance

- Companies House compliance (Ltd)

- Completion of VAT returns

- Completion of Annual return (Ltd)

- Personal taxation return

- Unlimited help and advice

If you were to get investigated, HMRC would look at all of the points to try and prove you were caught by IR35. You need to try and make sure that as many as possible point towards self-employed status rather than employed. Many of them are quite easy to do anyway - get business cards made, a website and company email, work from home and ensure your contracts are as free as possible - get each contract reviewed!

What happens if you are caught

If you are caught by the IR35 rules, then we have to work out what is called your ‘deemed salary’ for this you may claim certain expenses but not as many as if you were outside IR35.
- Employers National Insurance Contributions
- Employer contributions to approved pension schemes
- Travelling
- Professional subscriptions
- Professional indemnity insurance

Practical considerations

If your contract is caught by IR35 then you have to pay HMRC the PAYE and NIC calculated on your deemed salary. HMRC have said that this can be paid at the end of the financial year with the final PAYE payment on the 19 April. You must inform us if you believe one of your contracts is caught by IR35 and your deemed salary needs to be calculated.

IR35 Contract Review

We would recommend that you have all your contracts reviewed.

Through our 123 Extra program we have set up a partnership with Qdos Consulting to offer a full IR35 Contract Review Service. HMRC takes into account whether or not you had your contract reviewed when applying penalties and fines, it is a service that we recommend to all clients.

To take out a contract review, please contact 123 Contracting directly to ensure you receive the discounted rates that we have negotiated with Qdos Consulting. Email, info@123contracting.co.uk or call the 123 Contracting office on 0845 834 0269.

Freelancer Tax Protection Insurance

If you want complete piece of mind that you are covered for all possible tax liabilities then our 123 Extra partner Qdos Consulting also offer full Freelancer Tax Protection Insurance.

Freelancer Tax Protection includes:

Qdos representation and attendance in the event of a PAYE compliance review

Insurance of fees up to £50,000 incurred representing you in defence of:

- An IR35 dispute
- A PAYE/NIC dispute
- A VAT dispute
- A HM Revenue & Customs aspect enquiry
- A HM Revenue & Customs full enquiry
- A Section 660A dispute

Includes weak cases to Commissioners’ Hearing if required.

For more info please email, info@123contracting.co.uk or call the 123 Contracting office on 0845 834 0269.

Running a Limited Company

Director's Responsibilities

Company Bank Account

Payroll

Salary

Dividends

Limited Company Accounts

Corporation Tax

VAT - The Basics

VAT - The Choices

Invoicing

Expenses

Expenses - Detailed Guide P1

Expenses - Detailed Guide P2

IR35

IR35 - Detailed Guide P1

123 Income Illustrator

The 123 Income Illustrator shows you what you can expect to take home from a given contract.

It also compares the differences between freelance contracting through your own Limited Company, through an Umbrella Company, as a Sole Trader or if you were to return to full time employment.

The123 Income Illustrator

IR35 - Detailed Guide P2

Company Secretarial

Personal Tax

Importance of Information

Important Dates

Being a Sole Trader

Calculators

FAQs

123 Referral

We run a simple referral programme where for every client you refer to The 123 Way we will give you £120.00

For more information check out the link below:

123 Referral

Disclaimer:
This information is for general information only. No responsibility is taken for any action taken or refrained from in consequence of its contents. Always seek professional advice before acting.