Can we talk about IR35 again please?
Comments
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I've just checked out the figures on the link you posted (for which, many thanks Prothet) - there really isn't a lot in it, is there. However, as we are both directors, and we both take our personal allowance as salary and equivalent dividends, there is still an advantage to working as a limited.
I suspect the government has 'husband and wife' limiteds in its sights, as they're seen as a means of avoiding tax. Which is a shame for those of us who actually do work in the business and earn our money fair and square. And ironic, as we were running the business before we were married...No longer a spouse, or trailing, but MSE won't allow me to change my username...0 -
Working on clients data off-site in your own office with your own computer is a good indication that you are not an employee. How many employees can do that ?
As is not working the hours that employees work. Turn up at lunch time having worked somewhere else in the morning is the best indication to them that you are not an employee.0 -
trailingspouse wrote: »I've just checked out the figures on the link you posted (for which, many thanks Prothet) - there really isn't a lot in it, is there. However, as we are both directors, and we both take our personal allowance as salary and equivalent dividends, there is still an advantage to working as a limited.
I suspect the government has 'husband and wife' limiteds in its sights, as they're seen as a means of avoiding tax. Which is a shame for those of us who actually do work in the business and earn our money fair and square. And ironic, as we were running the business before we were married...
The main advantage I see is that of limited liability. I might have 2 million quid of professional indemnity insurance, but I advise on the manufacture of products that cost 10 times that. So if the £2M doesn't cover it, I stand to loose just £36 that it cost to set up. :rotfl:
Because my wife "only" does the admin, we choose for her to be an employee and not. Now I'm thinking of having a round of redundancies and wonder what tax free payout she'd accept without taking me to a tribunal :rotfl:
Only joking. without her I'd forget to invoice and get confused over the Vat. :cool: Plus Employee Christmas party :beer:0 -
Yes, he is pretty flexible - works 3 days most weeks, but not necessarily the same three days (and although he informs them as a courtesy, he doesn't need to ask permission to vary the days), will work from the office when it's appropriate to do so, and works for other clients at other times (although I don't think he's ever worked for two clients on the same day!! I'll see what I can do...)
Having done a bit of research online as well as asking on here, my take on it all is that each individual element might not be enough to prove you are a contractor, but together it builds up a picture which shows HMRC that yes, you are indeed a bona fide contractor, or no you're not.
Which begs another question - at what point do HMRC start checking out whether IR35 applies to you?No longer a spouse, or trailing, but MSE won't allow me to change my username...0 -
Ha ha - I made a mistake once, and OH threatened to sack me. As it was a minor mistake, I said I would claim unfair dismissal. The settlement figure was going to be quite high...No longer a spouse, or trailing, but MSE won't allow me to change my username...0
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Does the company have Professional Liability insurance?The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.0
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trailingspouse wrote: »Yes, he is pretty flexible - works 3 days most weeks, but not necessarily the same three days (and although he informs them as a courtesy, he doesn't need to ask permission to vary the days), will work from the office when it's appropriate to do so, and works for other clients at other times (although I don't think he's ever worked for two clients on the same day!! I'll see what I can do...)
Having done a bit of research online as well as asking on here, my take on it all is that each individual element might not be enough to prove you are a contractor, but together it builds up a picture which shows HMRC that yes, you are indeed a bona fide contractor, or no you're not.
Which begs another question - at what point do HMRC start checking out whether IR35 applies to you?
Just to chip in, IR35 is contract specific, simply having several contracts on the go at the same time doesn't strengthen or weaken the IR35 status in the slightest. It's about working conditions termed between the two businesses, not the contractor/employees lifestyle.
As someone else pointed out, 24 months has nothing to do with IR35. It's also a common rumour that HMRC start investigating you after 2 years, not true at all, just another odd assumption made by uneducated people.0 -
Does the company have Professional Liability insurance?
The key point is whether the contract places liability on the service provider, not whether the provider has taken out insurance to cover such liability. Unless such insurance is specified in the contract, the decision is with the directors of the company and absence of such insurance not an IR35 indicator.0 -
Yes, we have Professional Indemnity insurance. And yes, our contracts specify our liabilities.No longer a spouse, or trailing, but MSE won't allow me to change my username...0
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