The Freelance Thread (Contractor, IR35)

so compounding ISA better?

Possibly, as with all of this stuff hedge your bets. If you can, go back in time and max out your ISA allowance every year

Arbitrarily assuming that the tax regimes now and in the future will be comparable (and any assumption otherwise is equally arbitrary), and that both ISAs and pension funds have the same underlying instruments, ceteris paribus, putting money into pensions as a contractor has a better net present value, as you are saving on employer & employee NI, and corporation tax. And you can invest more.

anyone here bills and get paid in USD while in the UK? Whats the best bank for such thing?

Are you Ltd? Loads of banks offer USD account these days. Best is subjective and varies day to day - it's a matter of shopping around, really.

Is it really that simple? I'd ask your accountant on this one rather than take advice from here.

I've been a contractor for over 20 years and always been fortunate to be able to avoid any contracts where I've not been paid GBP.

I guess that's only been a handful where I would have been deemed to be working
for a foreign legal entity and then get into the subsequent tax queries so you may be in a totally different situation.

Is it really that simple?

To get a USD account? Yes. There's no magic rules just because it's a different currency.

Are there tax implications for being paid by an overseas entity? Possibly different VAT treatments, transfer of services stuff - And you're right, an appropriate accountant should be consulted for that.

Are there tax implications from converting to GBP - yes and no. Again - it all depends on how you are set up. See above, re: accountant/

If it's part of some arbitrary convoluted tax avoidance, then 1) don't do it, and 2) find an independent accountant, who should tell you not to do it.

Are you Ltd?

Yep, people have told me Revolut is great for this, so have opened an account, pray4me

could you ping me your brokers details, need to find out how to get mortgage now I'm freelance, and missus is still staff. Previous offer was when we were both staff.

Thanks

anyone go above £312 threshold to claim expenses to work from home? Is it worth the effort?

So have possibly been offered a contractor role within IR35 in Aberdeen which means I can either choose between PAYE through the recruiter or find an Umbrella company but I have no clue what is best and looking for recommendations/advice if anyone can help!

put in your day rate in an umbrella calculator like Parasol https://parasolgroup.co.uk/contractor-calculator/

and compare that to what the recruiter is offering with PAYE

go with whatever pays you more net plus if there is any admin involved, offset that.

Yeah, the PAYE is working out better at the mo, hoping to get more details today tomorrow, just wondering on the pitfalls, other than not as secure work as a permanent role

Never used Parasol personally but seen some bad experiences posted from very respected people on Linkedin recently.

Parasol have just messed up my pay from December. I'll say their customer service is decent enough though I'd rather have not had to use it.

Parasol are one of the larger ones, if not the largest. Which means they'll get shit wrong from time to time but they aren't evil / cowboys

Parasol had a 'cyber' attack on 11th Jan. Pretty much haven't paid anyone due wages in December or 1st week of Jan although they are now paying some people some money.

Their customer service has been atrociuos and basically given up responding to people.

A lot of contractors are owed a lot of money by them.

Ah... good intel. I'm getting through to people but they seem to be trying to say the company I'm contracting for are the ones dragging their feet.

To this point (not being paid aside) I've found them good in companion with Crunch (Crunch offer a referral) - for the constant dance of Ltd+outside IR35, Ltd+inside IR35, Umbrella and back again that I tend to do with my work.

where are you guys putting your pension money in as a company contribution? I was looking at Vanguard as I already use them for ISAs.

Hargreaves Lansdowne SIPP

SIPP

Self Invested i.e. part of your PAYE income? or is that the same thing even if its a company contribution not individual/employee?

I am talking this sort of thing: https://www.hl.co.uk/pensions/contributions/employer

Both - I transferred all of my personal pensions from elsewhere (which were charging me 1+% per year), and set up a plan with HL. I can pay either with my Ltd or personally.

II SIPP https://www.ii.co.uk/ii-accounts/sipp

Cheapest for my situation where their flat fees are cheaper than a %.

Direct debit from my ltd each month. Easy to set up. Can refer you if you like and you'll save a year's fees: https://www.ii.co.uk/ii-for-friends/customer

can you send me a referral link pls?

PM'd