Legaly outside IR35 ?

[Mindomoo]

Re: Well...

Unless of course you trust the other person not to run off with your money

In my case my other half has a big family who we get on well with. We are not married. All my shares are held by his in-laws and adult off spring of them (8 of them in total). None of them could be classed as a connected person according to the legislation

Yes its a risk but my annual turnover after expenses and salary split 8 ways means if one decides not to return the cash to the rightful owner then I'm out less than if I got caught for IR35.

And they'd have my other half to deal with

[planetit]

Re: Errm, possibly...

Surely she's outside IR35 ?

She is. But you wouldn't be.

You could always get someone not realted and not involved with you to do it.

And that wouldn’t work either

[Underscore]

Re: Errm, possibly...

Yeh - but even if i am inside ir35 - so what. I'm only going to get taxed on the 5k?

[planetit]

Re: Errm, possibly...

No. You'll be taxed on your deemed salary. Regardless of where the money has actually gone.

If you are caught by IR35, all these intermediaries are ignored for the purposes of calculating deemed salary.

[Mindomoo]

Re: Errm, possibly...

Not if your shareholders are also directors and are not connected

The whole point of the argument of IR35 is that as a close company usually with connected persons as directors, you are effectively setting your salary which not a commcercial one purely for tax avoidance

If you company is not closely held and your directors are not connected then you have no control over your salary

And S660a doesnt come into place either

Virtually every contract I have had has been safely outside IR35 - but the company structure adds a little bit of protection as well

[planetit]

Re: Errm, possibly...

Interesting Mindmoo. So your solution to IR35 is to give away all your money. I’m assuming these “non relatives” don’t give the money back to you because then it would be taxable.