IR35/Income Shifting...is this a Solution?

[knockyoak]

Hi All

Newbie here so please go easy.....

I have been contracting for 2 years now and only really now starting to get to grips with running my own limited company (havent had the best accountants to advise what I should be doing/claiming etc...). Anyhow so far no problems. I have always opted out of IR35. I have also given my wife a decent dividend as she does my books etc. My wife also does Botox. If I put this down as another 'service' (i.e all botox transactions via my company) that my company offered would this cover me for IR35 and also help put something into place to reduce the risk of the Income Shifting legislation next year?

Any advice appreciated

cheers

Pete

p.s if the HMRC are currently investigating any of you and you can see your wrinkles getting deeper as a result of Mr Darlings henchmen then I can recommend someone to take the years off you

[NotAllThere]

IR35 is contract by contract. So, no, it wouldn't help. It could help if she was working in the same line of business. But Botox and IT would certainly be considered different streams.

With income shifting, it would depend on the amount of work that she does.

[Crossroads]

I have always opted out of IR35.

IR35 is not optional!

I have also given my wife a decent dividend as she does my books etc.

You reward employees with salary, not dividends.

My wife also does Botox. If I put this down as another 'service' (i.e all botox transactions via my company) that my company offered would this cover me for IR35 and also help put something into place to reduce the risk of the Income Shifting legislation next year?

No.