Originally Posted by Hightower
During my whole career all I've ever been is PAYE but though redundancy I have the chance to accept a contract job and was wondering what the pro's and con's were for each type.
I really want something hassle free.
Andy, just get some prof advice/do lots of research otherwise you may find yourself back in PAYE land, retrospectively + interest! If genuinely contracting then you will be fine but if simply 'dressing up' a contract of employment as a contract for services, i.e. caught by IR35
(umbrella or otherwise) then HMRC will most likely enquire and, boy, they are like a dog with a bone!
The Revenue are getting much more agressive with tax avoiders (god help evaders
), even perceived avoiders are now targeted [e.g. we regularly receive unsolicited letters from HMRC saying 'own up and we will not come after you for unpaid tax'
], and, quite frankly, they have seen it all before...AGM's in the Caribbean (misses the only shareholder? Artic Systems case!?), company car (benefit in kind/no doubt the P11d is ignored!), etc
What I do know is that if an artifical avoidance scheme is created then HMRC usually move to close it down, if you have joined up to that scheme, then you are usually left holding the tax baby - umbrella services