Sole trader to Ltd company

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  • Makkusu
    Makkusu Posts: 100 Forumite
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    --Tony-- wrote: »
    I have 100% no 'supervision, direction & control' I work in my clients customers private homes without supervision, direction or control, nobody is present or sees me working and I have no workplace as I work in private homes.

    Well it impacts all umbrella, and only if you're caught by IR35 which a 10 year working relationship most certainly would be.
  • --Tony--
    --Tony-- Posts: 1,742 Forumite
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    Makkusu wrote: »
    Well it impacts all umbrella, and only if you're caught by IR35 which a 10 year working relationship most certainly would be.

    How is my situation?

    I have no workplace at all, I start from home drive to a customers home and service their boiler, the customer is a customer of my client. After the first job I drive to next home to do the same and continue this all day long, visiting 8-10 homes.

    I am not supervised while working.

    I never attend an office of my client.. ever.

    If we have a team meeting it will be in a hotel.

    I have no benefits the direct engineer get.

    I can be let go at any time without notice

    I provide my own van and most of the tools, direct engineers get this provided.

    I have a different manager to direct engineers, and never attend a meeting with direct engineers.

    I understood they managed us separately to ensure we could not be seen as treated the same as direct engineers.

    Surly all this puts me outside IR35
    .
  • Pennywise
    Pennywise Posts: 13,468 Forumite
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    Do they give you a daily list of customers to visit with a list of what jobs need doing at each?

    Do they give you instructions as to how they want the job doing?

    Do you have any choice whether or not to "take" the jobs they're offering you on any particular day?

    Do you have to meet any "targets" such as cross-selling other services/products, such as co2 monitors, feeding back sales leads for other services/products such as additional/replacement radiators etc?

    Supervision, direction and control can be deemed to be a lot wider than someone looking over your shoulder and you working at their premises.

    Unhelpfully, there are no hard & fast rules, but what is clear is that HMRC are forever trying to broaden the scope of who is caught by IR35.
  • --Tony--
    --Tony-- Posts: 1,742 Forumite
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    edited 1 May 2017 at 4:56PM
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    Pennywise wrote: »
    -
    Do they give you a daily list of customers to visit with a list of what jobs need doing at each?
    I get a list of address's and jobs that need doing arrive on supplied laptop.

    Do they give you instructions as to how they want the job doing?
    Being gas safety all jobs need doing both to set industry safety standards and company procedure, really the same procedures I follow when not working for them (eg: if you paid me to service your boiler)

    Do you have any choice whether or not to "take" the jobs they're offering you on any particular day?
    I choose the days I work and how many jobs I want on that day, once planned I can't refuse them. I often refuse them when they try to give extras I did not ask for.
    It's my choice when I work and what hours I work, I could take a few months off if I felt like it.


    Do you have to meet any "targets" such as cross-selling other services/products, such as co2 monitors, feeding back sales leads for other services/products such as additional/replacement radiators etc?
    No targets

    Direct engineers would be sacked for moonlighting, we of course are self employed and free to do as we wish in our own time.
    Years ago we used to work within the direct employees teams, same manager, same meeting etc etc, all this changed a number of years ago to ensure we were seen as a different entity, we were moved to our own team with own management structure and never mix with the direct engineers.
    Currently a Sole Trader I fall under the CIS scheme.
    .
  • chrismac1
    chrismac1 Posts: 2,585 Forumite
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    If HMRC think they could win an IR35 case against you, good luck to them mate. Because based on your post, they have lost many cases where the person concerned was more of a staff person than you are.

    Get tax investigation insurance for around £100 a year. HMRC mainly win IR35 cases by having longer pockets against uninsured victims, who rack up big fees defending their positions and cave in due to the financial pressure not the strength of the HMRC argument.
    Hideous Muddles from Right Charlies
  • Makkusu
    Makkusu Posts: 100 Forumite
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    --Tony-- wrote: »
    How is my situation?

    I have no workplace at all, I start from home drive to a customers home and service their boiler, the customer is a customer of my client. After the first job I drive to next home to do the same and continue this all day long, visiting 8-10 homes.

    I am not supervised while working.

    I never attend an office of my client.. ever.

    If we have a team meeting it will be in a hotel.

    I have no benefits the direct engineer get.

    I can be let go at any time without notice

    I provide my own van and most of the tools, direct engineers get this provided.

    I have a different manager to direct engineers, and never attend a meeting with direct engineers.

    I understood they managed us separately to ensure we could not be seen as treated the same as direct engineers.

    Surly all this puts me outside IR35

    Yes all points to outside IR35. Only area of risk would be length of service but on provision of the above I'd deem you low risk.

    Thanks.
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