Private Sector and IR35 -Grrrrr

[Jessica@WhiteFieldTax]

Why is it perverse? If they made the same argument about a vast majority of people who are outside IR35 and paying their wives they would be right.

We've been here before I think.

In just over thirty years and about 3000 clients, I've only seen inter family salaries be an issue twice. Doesn't mean it wouldn't be rich pickings if they looked into it.

And no, I'm not advocating gay abandon.

[northernladuk]

We've been here before I think.

Probably

In just over thirty years and about 3000 clients,

Sounds like a lady I know.

I've only seen inter family salaries be an issue twice. Doesn't mean it wouldn't be rich pickings if they looked into it

You said the argument not the actual situation. The argument would be correct. Them not focusing on it is a totally different thing.

And no, I'm not advocating gay abandon.

So marrying my best mate won't work? Dats discrimination dat is.

[Jenme]

But you are going to Split them 90/10 to reflect the work you do aren't you?

Not anymore!

[Jenme]

Legally there is nothing to stop a spouse being employed by contractor co.

In this case as 95% of the company turnover has to go to main contractor as salary, the practical restriction is that the remaining 5% has to cover the spouse salary and other expenses.

If the spouse salary isn't within 5%, then between you you end up paying tax on more than 100% if turnover and racking up potentially unreliable tax losses (which is an anathema to a accountant).

Regarding the employment allowance, you need to have two people on the payroll where there is an obligation to pay Employers NI. Because of the practicalities of the figures above, it isn't going to work for you.

Not surprised HMRC were giving mixed messages; in these days of call centre based service, the skill set isn't good. Whistfully I remember the days of local tax offices and knksn staff you could talk to. Progress.

A lot of accountants are scared by this type of work, it seems anything to do with IR35 creates fear, hence the firms who speclaise in this area which, if you approach it logically, isn't rocket science.

Many thanks for the clarification on this, the 95% salary/5% expenses is definitely the only way ahead then.

[northernladuk]

/thread

[Cirrus]

You seem to be saying you get paid as a limited company so I'm thinking you can do what you like with regard to distributing the revenue. Obviously there is more risk if HMRC come after you but there's always risk in being a contractor unless you are willing to pay excessive tax, so as a matter of interest what did the form say and who received it?

[northernladuk]

You seem to be saying you get paid as a limited company so I'm thinking you can do what you like with regard to distributing the revenue.

Did you not read the thread?

[gables]

He's an IT consultant in the private sector - he had to sign a form to say he was inside IR35.

Did you not read the thread?

I did :-) but I'm curious about Jenme's post I've quoted. In the private sector the decision as to whether a contract is inside\outside rests with the contractor, so I wonder why there was a form to sign... unless the private sector client is delivering to a public sector body...

[northernladyuk]

Sounds like a lady I know.

I see from another thread the Simon Dolan's back on the game.

[Jenme]

I did :-) but I'm curious about Jenme's post I've quoted. In the private sector the decision as to whether a contract is inside\outside rests with the contractor, so I wonder why there was a form to sign... unless the private sector client is delivering to a public sector body...

The agency gave him the paperwork to sign, it was a condition of the role. His client delivers to both the private and public sector.