Inside IR35 Off-Payroll Solution for Contractors
QAccounting is the UK’s longest-serving contractor accountants. Established over 25 years ago, we have a long history in delivering high-quality seamless services to Contractors including payroll, accounting, insurance and IR35. This Off-Payroll solution keeps you trading through your limited company as opposed to going Umbrella.
- Continue to use your limited company
- Remain an independent Contractor
- No administration, all completed by us
- Taxed money paid into Ltd company immediately available to withdraw
- Access to portal and dedicated Client Manager
- Full insurance included in the fee
- Daily Payroll runs, £15 per week charges
With our Off-Payroll solution, you continue to trade through your limited company using your agency’s self-billing system and we take care of everything else including the following:
- Agency Payroll
- Company Setup
- Business Bank Setup
- Registered Office Address
- Automated Bookkeeping
- Online Portal
- Company Payroll
- Annual Accounts
- Quarterly VAT returns
- Annual Self-Assessment
You will remain an Independent Contractor, primarily employed by your limited company, working through your limited company and your contract remains with your agency.
Your agency will tax you through secondary “off-payroll”, the money (net of all taxes) is paid into your company’s trading account and the funds will be immediately available to withdraw as they have already been taxed by your Agency at source. If you are VAT registered, the payment will also include VAT and we will complete your VAT returns and can also make the payment to HMRC on your behalf. If you have claimed expenses on your Agency invoice, this will also be included and paid without tax being deducted.
While continuing to contract through your limited company, you may find outside IR35 contracts will become increasingly available once the contracting industry settles to the change post-April, in which case, your limited company is already up and running.
If you use an Umbrella payroll scheme, you may incur multiple fees, especially if your limited company has investments or other assets which will require you to keep the company open. By continuing to operate inside your limited company you will only incur an incremental fee of £35 per month.
You will also have the freedom to choose or continue to make payments into your personal pension scheme whereas the Umbrella option will generally restrict you to their scheme. The payments you make into your pension scheme from your limited company are taxed so HMRC will pay the 20% tax into your scheme to ensure your payments are free of tax. If you are a 40% taxpayer this will be further relieved through your tax return.
We take care of everything on your behalf, all accounting and compliance, allowing you to focus fully on your contract assignment. You will have access to a portal which provides your limited company information and you will also have a dedicated Client Manager for questions and support. Your Limited Company will be fully insured by us at no additional cost to you, the insurance being a mandatory condition of your contract with the Agency. The simplicity of this solution should also leave you with more money in your bank account when compared with Umbrella, as the fees are lower.
Please contact us for further details.