A lot has been written about why IR35 is bad for contractors. But it's not that simple. Freelancers like you are using MVLs (Members Voluntary Liquidation) as they move from contract to contract or from contractor to employee and back to being a contractor. Alan explains that there are many benefits to the IR35 legislation, especially when using MVLs
MVL or Member’s Voluntary Liquidation sounds terminal but, it’s not. It’s just a process that allows you, as a contractor, to take the built-up funds in your business. It’s ideal if your employment status has changed, for example, because of IR35, you’re moving to a new contract or just sitting on a dormant registered company.
Many successful contractors are sitting on money in their company’s bank account. But you could close the company, take advantage of tax relief and get a lump sum from the company into your own bank account. In this video, Alan explains how.
If you’re a contractor then you will most likely have had a discussion with your employer’s HR department on how they need to re-assess your working practices. But does it really matter if you’re working inside or outside IR35?
As contractors, we’re always looking to reduce our tax bills. There are some really helpful government schemes to use especially when we’re coming to the end of a contract, switching to PAYE or just moving out of contracting altogether. In this video, Alan explains the options.
Being a freelancer is actually a lifestyle choice. People are building funds in their company so that they can take those expensive trips abroad, buy a new property, or break out of contracting altogether. So, what's the best way to take the funds from your business?
