Inside IR35 - Redundancy?

[Mordac]

Denny thanks for your reply.

I agree with your points about me being the contractors 'substitute' and not the actual contractor. All I need to do now is find someone to retroactively insure my employer against IR35 infringement. As my employer said that they would make me redundant if they wouldn't be liable for potentially evading IR35.

The only way you can "infringe" IR35 is to pay yourself dividends if your contract is inside IR35. You didn't read my previous reply, obviously. Your employer is either an idiot or he is taking you for one. IR35 has no affect whatsoever on redundancy or vice versa. Unless you are being paid dividends which are directly derived from the work done on your contract you are unaffected by IR35. Can I suggest you show your employer some of these replies.

[monkeyboy]

This seems to be a case of them using you as an employ to work at customer sites.

This isn't legal question but are you aware of the ammount you employer is paid for your services and does your salary reflect this rate minus the taxes.

If you are not working are they obliged to pay you a salary.


I did this for a short time for a frien ie they used my company as there contracting vehicle It was a complete pain as I then had to start doing monthly tax returns etc for no real benifit to me. I'm out side IR35 anyway.

But basically do you have a contract of emplyment with your employer that states salary times of work etc?

The expences bit seems a bit off as well.

My advice is to get out and go contracting and forget about them. Redundancy will only be available if they get rid of you and thats where the question of obligation come into play. Also if the are just taking a cut from your rate ie handling fee and the rest reflects your earning minus tax its a bit off to ask for any redundancy. Where would the money come from.

Having done this for a friend I would never recomend this type of relationship they felt ripped off by Me and IR and I had loads more paper work for little return and no ability to make a profit. Plus contractural relationship was not defined .