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Where Taxpayers and Advisers Meet

Inside IR35 but pay into ltd company bank account

inspiring dummy
Posts:1
Joined:Tue Jun 18, 2019 11:34 am
Inside IR35 but pay into ltd company bank account

Postby inspiring dummy » Tue Jun 18, 2019 11:47 am

I work inside IR35 in MOJ. I don't have an umbrella company. I use an independent payment company (who is not my umbrella company) they deduct taxes and NI and £5 (each transaction) for doing this then pays money to my ltd business bank account. my ltd company then pay myself (the company director) a salary plus dividend.
My query is if I can still claim the 5% turnover as the business expense allowance and mileage for business travel.

If anyone could give any advice that would be great. Thanks.

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Inside IR35 but pay into ltd company bank account

Postby robbob » Tue Jun 18, 2019 4:14 pm

First up you need to establish whatsssssss uppppppp

(1) is this public sector IR35 work paid via a sales invoice issued from your company (albeit it may be self billing so issued by customer and marked self billing)
(2) Could it be that these are simply employee salary payments and the fact the funds have been paid to your company is an irrelevance and should be treated as directors loan introductions.
(3) Something more spooky.

Whoever is issuing the payment and calculating the tax/ni should be able to advise whether its 1 2 or 3 and the answer to your question will depend on which one applies.

Ali1000
Posts:3
Joined:Fri Nov 15, 2019 10:18 am

Re: Inside IR35 but pay into ltd company bank account

Postby Ali1000 » Fri Nov 15, 2019 10:24 am

I will be working in the same style soon or later as a contractor. I was wondering how you are managing to have the remaining salary after deductions be paid to your business company bank account as normally Umbrella companies do not do this. Could you be able to give me some information about how you do things in this way?
I work inside IR35 in MOJ. I don't have an umbrella company. I use an independent payment company (who is not my umbrella company) they deduct taxes and NI and £5 (each transaction) for doing this then pays money to my ltd business bank account. my ltd company then pay myself (the company director) a salary plus dividend.
My query is if I can still claim the 5% turnover as the business expense allowance and mileage for business travel.

If anyone could give any advice that would be great. Thanks.


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