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Caught by IR35? - Orange Genie Have the Complete Solution.

The reform of off payroll working in the Public sector left many contractors in a situation where some of their contracts will be outside, and some inside IR35. This leaves them with a dilemma, the attraction of operating through a Limited company maximises if the contract is Outside IR35 and contractors can take advantage of a dividend income. For those working inside IR35, umbrella employment is now the preferred route and saves you more in tax.

Since the inconvenience and cost makes it impossible for most contractors to manage both limited and umbrella, the available options are not ideal:

  • Trade through your limited company when working inside IR35. Your company will be paid after PAYE tax and NICs are deducted. You’ll often pay more tax than an employee would because the fee payer will apply a BR tax code, and even though you’re taxed as an employee you won’t have access to the same rights and protections an employee enjoys. All income you earn is therefore taxed as if you were under permanent employment.
  • Choose umbrella employment while outside IR35. This means missing out on the tax planning opportunities that are available while trading through your limited company, and you’ll be effectively losing money by paying more tax than you need to.  You’ll also have the potential hassle of opening and closing a Limited company, as it could be very cumbersome if you don’t need it.

Orange Genie have the solution:

Orange Genie don’t like this kind of compromise. “Why should contractors use a working arrangement that’s only best for them sometimes? Why not create something that is flexible and makes their lives easier? That’s why we created Orange Genie Complete, it gives our clients the best of both worlds at no extra cost,” says Dan Moss, Group Sales and Marketing Director at Orange Genie.

Orange Genie Launched the new product in April 2017, in time to help contractors who were affected by the Public sector changes, and it has effectively solved this problem.

Put simply, Orange Genie Complete allows Orange Genie Accountancy clients to switch to umbrella employment and back again, as many times as necessary and at no additional cost. The transition is handled internally making it completely seamless allowing contractors to effectively choose umbrella or limited on a contract by contract basis. It also gives our accountants the full story ensuring tax planning is long term, effective and above all, in your best interest.

For Orange Genie Complete clients, Umbrella is margin-free, so they only pay for their accountancy package.  This has proved extremely popular among Public sector contractors, as it means they’re always using the best model for their circumstances, even if those circumstances change on a regular basis.

What to do if this issue affects you:

If you’re a contractor who works both inside and outside IR35, or if you just need advice about the best working arrangement for your circumstances, please contact our expert team on 01296 468483 or email info@orangegenie.com.

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