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Another IR35 question

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    Another IR35 question

    Evening all,

    I had a quote from an umbrella for the handling of upcoming contract due to start next week. She phoned this afternoon to see if I was happy with the quote (67% return on gross BTW) and I had to tell her that I found it far more appealing to be in control of my own businesss and I found the differentiation between 67% and 79%(ish) unbelievable. She pointed me at the employed/ self-employed HMRC page, to be found at

    http://www.hmrc.gov.uk/pdfs/ir56.htm

    , and scared me into believing that contracts with "AGENCY NAME" are usually within IR35 and I was stupid not to take on her services.

    Now is she just trying to scare me into using her services or does she have a real point. I have answered the self-employed side of the questions and they are below. Anyone think that the "No's" will mean I will bent over for all the deficits in Broons glubberment or can I reasonably "Excuse" them as I have below.

    These employed/self-employed arguments in the document leave a HUGE grey area in the middle...and I assume if you fall within this you are at the mercy of hector.



    Self-employed

    If you can answer 'Yes' to all of the following questions, it will usually mean you are self-employed.

    • Can you hire someone to do the work for you or engage helpers at your own expense?
    • Yes. Further help can be “engaged” at the expense of the company.

    • Do you risk your own money?
    • Yes. Initial outlay on computer equipment, tools (DVM, oscilloscope, etc.), stationary, and business start up costs (insurances/ accountancy).

    • Do you provide the main items of equipment you need to do your job, not just the small tools many employees provide for themselves?
    • Yes. This includes computer, software, tools (DVM, oscilloscope, etc.).

    • Do you agree to do a job for a fixed price regardless of how long the job may take?
    • No. Consultancy is charged at an hourly rate.

    • Can you decide what work to do, how and when to do the work and where to provide the services?
    • “What work to do” – No. This is the nature of the services offered – i.e. to provide solutions to given problems.
    • “How” – Yes. It is the purpose of the services offered to provide an engineering solution to a problem.
    • “When” – Yes. However, normal office hours will be worked on the basis that it is necessary to communicate with clients employees.
    • “Where” – No. Working material is security sensitive and therefore is not allowed to be taken off-site.

    • Do you regularly work for a number of different people?
    • Yes. The service has a definitive termination date after which term further provision to supply services will be sought.

    • Do you have to correct unsatisfactory work in your own time and at your own expense?
    • No. Services are provided at an hourly costing for complex engineering solutions. Performance is not applicable in the rating of the provided services because of the hourly charging structure.


    Being so friggin' long will put a lot of you off reading this, however, for those that can be bovvered, many thanks in advance.

    Conned tractor.

    #2
    Originally posted by conned tractor View Post
    Now is she just trying to scare me into using her services.
    Yep.

    Sounds like you're less in the grey area than most outside IR35 contractors.
    Will work inside IR35. Or for food.

    Comment


      #3
      cheers Vectraman.....she laid it on real thick and unnerved me a bit.

      Comment


        #4
        Originally posted by conned tractor View Post
        ...Being so friggin' long will put a lot of you off reading this, however, for those that can be bovvered, many thanks in advance.
        You're right about that!

        Yes, she's trying to scare you into taking her services, which in itself would make me decide not to use them.

        The basic rule of thumb is: IR35 is largely a voluntary tax.

        And even if you are caught, you're still better off with your own company, as you are fully in control of your finance. Ask her what her company does if, for example, the agency pays late. How aggressive are the credit control services they provide to you?
        Down with racism. Long live miscegenation!

        Comment

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