Contract Help needed Please

[abels]

Knowing that many of you on here are in the IT industry,I have a small query which I hope someine can help me with. I have been contracting for 4-5 years now. But haven't had a contract in the UK for about 3Years. I am thinking about moving back to England in January and will be looking for another contract. What I would like to know is about IR35. Is it in force? What exactly is it? I also have a Luxembourg company and residence, where I will still be spending some time. Am I able to invoice with this company in the UK? Any useful tips much apprecaited.
Maybe I will be able to repay the favour with a few

Mark

[sbyatt]

IR35 is definitely in force. So far, it's cost me many £10K's in extra tax. I just started working in Netherlands, and don't particularly want to work in the UK any more / at all.

The bottom line is that if you are a hidden employee *all* your income through that contract will be treated as taxable. Even if you are self-employed or not. Your accountant is legally bound to reflect this in your P35.

Unless you are not acting like an employee, you're stuffed. All those wonderful tax benefits are gone. Including expenses and dividend payments.

[yum]

Check out this link.

www.wbsonline.net/tech_bulletins/5.html

Yes, it rightly penalises those who really are hidden employees so that they pay the same tax as the rest of the population. Doesn't seem unduly unfair to me.

I have a one-man consulting company, but since I have several clients I haven't been caught up by this (but then it is the first year!).

R

R

[abels]

Thanks for the info. I am now seriously considering whether the Uk is a place to work in anymore.

[dougal]

sbyatt, I think I am coming to the same conclusion as you re working in the UK and the Netherlands, after spending some time there getting to know the people and the culture, is a prefered alternative, do you have any advice on getting your foot in the door, ie what languages are prefered etc, where I should look for info? I have looked on the undutchables web site which is fairly good for info, but as someone who is there are there any hidden extra's re tax etc?

Thanks in advance if you reply.