LImited Company Contracting

skyjumper

Our Ltd Company provices consultancy services to big Companies.
Now, most of the work we get is through third party Agencies which find work for us - something like a Temp/Locum Agency.

IN 2008, which is also our first year in business,
we have worked for Client A through Agency X for 5 months
Client B through Agency Y for 1 week
Client C through Agency X for 5 months
and unfortunately no wrk for almost 1 month.

Now when the contracting starts, it is NOT for a limited period and depends on the work and how fast we can finish them. so we review things on a monthly basis with the agency.

Speaking to a friend who is doing very similar thing, gives me the impression that I shouldn't be working for the Same Company or Same agency for a longer duration as the Ltd Company could adversely affected if there was an HMRC enquiry. I really don't get it don't think we are within IR35.

Browsing through this site, and going through the HMRC web for small businesses, I couldn't find anything.
Spoke to my ac!!!!ant- who doesn't think anything wrong in what we are currently doing. But, my friend's Accountant has advised him not to do what I have been doing.

Not sure who is right or wrong. If I'm wrong, I would like to correct myself.
any advice really appreciated. Thanks inb advance

fengirl_2

I agree, I dont think you are within IR35 either. You are carrying on legitimate consultancy work like hundreds of other firms - there does not appear to be any element of personal services here.

ashleypride

You say our company, which suggests more than one worker in your company? If so, this suggests you are a business and not supplying a personal service. If both your company, the clients, and the contracts between all the parties agree that substitution is fine then again another strong indicator you are a business and not within IR35. (Ie. If you are ill, somebody else in the company can supply services to the client)

I'd strongly recommend becoming a member of the Professional Contractors Group (pcg.co.uk).

stphnstevey

Try this
http://www.hmrc.gov.uk/employment-status/index.htm#1

Google IR35 and there is loads on it. We can say what we think, but at the end of the day the buck stops with you.

You can also get insurance against inspectio if your really worried - this is on company that offers it, but as always, shop around
http://www.qdosconsulting.com/qdosmain.asp?file=nfgd27cv8k6k

PS - I think your outside of IR35

chris_spackman

I have thought about starting a business a little like a concierge company.

Aafter doing a little reserch i have spoken to people who have said that they would want to employ me to do what was needed, so for example if they wanted to arrange a party etc i would seek out a load of people to do it from food to entertainers.

A few are keen for me to get going and supply a cleaner for their homes. Now if i supply a cleaner and customer pays me then in turn i pay cleaner am i classed as an employer? I would be giving the cleaner as much work as possible but giving him / her the choice to do the work or not and with regards to doing the work the customer will tell the cleaner what is to be done. The customer will then ask the cleaner to do more hours if needed and also supply the materials or the cleaner will, that is their choice.

I will put a contract in place that states he / she will do good any bad work at their expense in time and money and that they are liable for any breaks of furniture etc in the clients home among other things.

Also if a customer said i want you to arrange a party with food, drinks etc and i go out buy all the stuff, hire an entertainer and invoice the customer after the party and out of that pay the entertainer is that classed as me being the employer?

An easy way of putting it would be to say that Mrs Jones wants a cleaner, calls me and i go round and she tells me what she wants doing. I then go home make a few calls and get someone else to do the work for me. They then go to Mrs Jones's house every Monday or whatever day she wants does x amount of hours there and at the end of the month i invoice her and the cleaner invoices me on a weekly / monthly basis at an agreed rate. Sometimes Mrs Jones tells cleaner not to go one week or do extra hours or to clean her garage instead of the house.

HMRC are not being that great in giving me the answer.

Can you help?

PasturesNew

skyjumper wrote: »

Speaking to a friend who is doing very similar thing, gives me the impression that I shouldn't be working for the Same Company or Same agency for a longer duration as the Ltd Company could adversely affected if there was an HMRC enquiry. I really don't get it don't think we are within IR35.

From my experience/knowledge this would apply after 2 years. If you are in the same job, through the same agency, as a contractor for two years, then you can no longer claim the expenses that a contractor can (mileage/subsistence/hotels/etc).