IR35 and possible closure of company

Hi Rosemary and Calvin,

It is looking like my current contract is going to be extended for a year, but they have told me that from April next year it will fall under the IR35 rules, as they are changing from April 2020.

I've done some reading up on the changes and it looks like my fees from the agency will be paid after tax and NI is taken off them. I'm assuming this means:

(i) I can pay the whole of the fees that Lasermount receives straight to myself as salary, as the tax and NI has already been paid

(ii) There would be no Corporation Tax to pay as a result of the part of the contract from April 2020 onwards.

Does that sound right according to your understanding of the IR35 changes?

Do you know how that the company has to pay as a part of doing business, things like insurances and your fees for accountancy work for instance, taken account of?

On a related note, as it seems likely that more contracts are going to fall under the IR35 rules from April 2020 onwards, I'm wondering whether it is worth keeping Lasermount going. If I decided to shut it down, what is the tax situation like? How does Entrepreneurs Relief work?

Regards,
Spencer Collyer
Lasermount Limited

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