No. There are many different options available to contractors captured by IR35 for their current contract. Depending on your circumstances, closing your limited company down may be a preferable option, but it is not essential.
If you are captured by IR35 on a current contract, then you can still continue working through your PSC. You simply submit invoices as normal then withdraw a revised amount, allowing for the PAYE and NIC that has been applied out at source.
This is not necessarily the most tax efficient way of working, but is an option available to you under the new regulations. However, many contractors opt for an umbrella solution instead, or a mix of the two. If you are thinking of blending these two different approaches – limited company for non-IR35 assignments and umbrella for IR35 assignments – then Brookson offer a dedicated service to cater for your needs. Our Flex solutions allow you to either temporarily work via an Umbrella Company, keeping your Limited Company ticking over until you start a new assignment, or if you are working on multiple assignments, you can maintain both in a cost-efficient way.
As a director, there are legal and business requirements which still must be carried out whether you are working through the company or not. Our team can help you work out the best approach and set everything up as you need.