If you’re deemed to be within IR35, the best route for you will depend on your personal circumstances.
You can continue to work through your limited company but the things to consider are:
- your agency or end-client must allow payment via a Limited Company
- you won’t be entitled to the 5% allowance to cover the cost of running your Limited Company
- all your contract income will be subject to Tax & NI and you’ll receive a net salary into your Limited Company
Depending on the length of your public sector assignment, you may want to consider the following:
- If you perform a mix of public and private sector assignments or operate public sector assignments that are less than three months
If you already use Danbro for your accounting needs and want to work on a short term assignment in the Public Sector, you can keep your limited company in a dormant state for free until you return to the Private Sector. We’ll put your accountancy fees on hold while you use our Employment Business (Umbrella).
Instead you will pay a weekly or monthly Employment Business margin.
- If you only work on assignments in the public sector or your assignment will last longer than three months
In this instance the best option may be to switch to an Employment Business (Umbrella).