Can a contract between my Ltd and myself help with IR35

[Langkawi]

Hi All,

I'm on the verge of setting up my own limited and am dicey about whether or not I'm captured by IR35 but will probably proceed on the basis that I'm not.

Does the terms of my contract between my limited and myself have any bearing on the Inland Rev's assessment of my IR35 status? My agency has provided me with what they say is an IR35 contract but given their track record it would be the first thing in a while they got right first time.

Also, can factors such as a business plan be taken into account? Would a business plan stating that I was offering my consultancy services to multiple employers in the local catchment area help?

Finally, if I am on the right track here, would setting up a website for my Ltd (presumable a tax deductable expense in itself) that detailed my availability to work for multiple companies etc also help as further evidence if Gordon Brown decided to challenge my IR35 status?

I've read multiple items about the Revenue winning very few IR35 cases and wondered if it was worth the effort of trying to bolster my postion with a few semi-devious manouvres.

Many Thanks,
Alan

[oraclesmith]

"I'm on the verge of setting up my own limited and am dicey about whether or not I'm captured by IR35 but will probably proceed on the basis that I'm not."

Unless you're trading already I wouldn't worry about it until you have some work. IR35 is based on your actual contracts and actual working arrangements.

"Does the terms of my contract between my limited and myself have any bearing on the Inland Rev's assessment of my IR35 status? "

Presumably you're a Director of your limited, so no I don't think it does. It's presumably still a 'close' ie. very small, company ? Beware written contracts and minimum wage.

"My agency has provided me with what they say is an IR35 contract but given their track record it would be the first thing in a while they got right first time."

They don't care so long as you sign it. Get it checked out by B&C or a friendly solicitor.

"Also, can factors such as a business plan be taken into account? Would a business plan stating that I was offering my consultancy services to multiple employers in the local catchment area help? Finally, if I am on the right track here, would setting up a website for my Ltd (presumable a tax deductable expense in itself) that detailed my availability to work for multiple companies etc also help as further evidence if Gordon Brown decided to challenge my IR35 status?"

It can help but it's what you actually do that counts. Unless you look like a permatemp then it's doubtful you'll get done. Take out legal expenses insurance and take some precautions. It's all good.