From April 2021, it is the end hirers responsibility to assess IR35 status on behalf of you, the contractor. So even if you are a director of your own limited company, you no longer have that responsibility moving forward.
Whether your working relationship falls inside or outside IR35 depends entirely on your personal circumstances and contract. However now, all contractor’s will be assessed by their end hirer and given a SDS. Your responsibility is therefore reduced – you just need to understand how you’ve been paid and double check that it’s right.
If you are not captured on a particular assignment, then you can simply work and invoice as usual. If you are captured, then you continue to raise your sales invoices as normal however the funds you receive from your fee payer will have already the necessary PAYE tax deductions.
As long as you only withdraw the net amount of the funds you receive, you won’t need to worry about any further tax consequences. Your accountant should produce statutory accounts that show your income with this tax deducted, to make sure things are clear. It may be that invoicing through a limited company is not as tax efficient as operating partly or wholly under an umbrella company, so it’s worth seeking expert advice on which is the best solution for you.
It’s important to remember, however, that whilst working on an IR35 captured assignment you can’t claim travel or subsistence costs for travel to your main site through your Limited Company (PSC). The only tax relief you can claim is for standard business functions such as accountancy fees and business insurance.