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Why is she reluctant to have her own Ltd? Agencies won’t go for sole trader as they then become liable for tax. So she’ll either need to invoice as a Ltd (could continue to be yours) or use an umbrella. Don’t use an umbrella as the take home is much less.
Re IR35, each contact/booking will have a Status Determination that decides if it’s inside or outside. The agency handles this - she will need to answer some questions - but it’s the agencies responsibility
Trunkie
@Mr_Smyth
I need some assistance, or rather my partner does. She is going back to freelance after 3 years of perm. Obviously lots has changed since then and despite me having a Ltd co and her doing some freelance through an umbrella co for a few jobs before we are totally confused by what google has shown us as advice.
The roles she will be taking on are creative director or senior art director for ad agencies.
In the past I have put some of her 1-2 week freelance jobs through my Ltd as they had to be done with a new supplier form completed and be Ltd. So I charged vat and paid her for her services so effectively zero for my business and she paid self employed tax on that. No funny tax avoidance business here.
Accountant didn’t query it but no idea if this will be frowned upon moving forward.
She’s reluctant to go Ltd and it’s still unclear if say a 6month contract comes in she will have to be made perm/IR35?
Also no idea how agencies view freelancers? Do they want them sole trader or Ltd?