IR35 and limited company

My plan is to be an IT contractor, and also see IT stuff on EBay as part of the limited company.

If I earn say 500 a week contracting, and 200 a week selling how does IR35 come into it? My business milage is 500 miles a week, and I aim to register for VAT (as my supplier is VAT registered). Does IR35 affect any of the stuff I can claim for (like petrol)? I'd rather play it safe and "be employed" rather than risk the tax man saying I'm not self employed.

Have I missed the point completely?

Hi Nick,

Take a look here, there is info about ir35, prehaps post a question on the forum.

From the sounds of what you have said you would not fall into IR35, how long have you been working for the same firm, as a contractor you are not getting any paid holiday, sick pay or "normal" benifits that a permie would get.

if you want further help, email me jamesATdirectsos.co.uk

Regards

James

The contract is initially 6 months, but with a possible extension. Most of the other contractors already there have been here for over 2 years.

I don't get any benefits, no.

Nick

well it sounds like you are outside IR35. You are also using you Ltd. company for other work, selling items on ebay, so it is not even your only income.

Regards

James

The contract is initially 6 months, but with a possible extension. Most of the other contractors already there have been here for over 2 years.

I don't get any benefits, no.

Nick

I used to be an IT Contractor myself. Basically, IR35 was designed to catch people like us. By its nature its ambiguous i.e. you can never be quite sure that you will not be caught by it. In the end I got some IR35 insurance which offered to pay my legal costs in the event of any claims. Also, if I was guilty I would subsequently be reimbursed for any losses. There's quite a few companies offering IR35 insurance - just do a search on google.