Limited Company or Member's deemed salary payment?

If all or most of your services fall within IR35 it is easier to become a member of Blue Intellect and be paid under the deemed salary rules within the PAYE scheme. ie your tax and NI contributions are deducted from your income. Benefits No paperwork or responsibilites Tax & NI deducted monthly If you are within the IR35 rules you can claim back 5% of your income as an expense allowance. Disadvantages You do not have your own business. However if not all of your services fall under IR35 you may prefer to have your own limited company. This means that you have your own business, a company bank account and be responsible for the affairs of the company. Benefits:- Complete control Claim back allowable expenses for tax thereby reducing your tax liability. If you are within IR35 rules you can claim back 5% of your income as an expense allowance. Claim back VAT on expenses. Disadvantages:- Responsibility as a company director Dealing with all the paperwork, Inland Revenue and Companies House ( But remember we can do all this for you!)                                                                                  top^

Am I in IR35?

The only way to be sure whether your contract falls inside or outside IR35 is to have it reviewed by us. Generally, if you are working directly through a recruitment agency and are being paid on an hourly/daily basis, and the recruitment agency is charging the client on a hourly/daily basis you will fall within the IR35 rules. However, if you are working directly for a client (even though you may have been placed by a recruitment agency) on a fixed price project basis for which you are taking complete responsibility for, you are most likely not to fall within IR35 rules.                                                                                  top^

If I fall inside IR35, and I have my own Company, what expenses can I claim?

You can still claim 5% of your turnover as an expense allowance, and claim the VAT flat rate.                                                                                   top^

If I fall outside IR35, and I have my own Company , what expenses can I claim?

You can claim back all expenses which are "wholly and exclusively" incurred to carry out the day to day running of the business. For Example these comprise travel, subsistence, use of home, motor, computer, telephone, broadband, printing, postage, stationery, training and accountancy.                                                                                 top^

Can I use Blue Intellect if I move from one recruitment agency to another?

Yes, you can move from any recruitment agency at any time to another and as long as they register with us, there are no restrictions                                                                                                top^

If I am working directly with a client can I use Blue Intellect to provide my services?

Yes, once you become a member we will take care of all of administration, invoice the client, pay you and collect the fees from the client.                                                                                  top^

I already have an accountant, do I have to continue to use their services?

No, we will prepare your tax return, deal with VAT, indeed all of your compliance requirements and give you tax advice.                                                                                 top^