Help Required: IR35 neglected

[Fred Bloggs]

I always thought that too but this article throws some doubt on the subject.

http://www.contractoruk.com/004376.html

That's right, but, having settled all known taxes correctly to the best of your knowledge, VAT, CT etc... Then there should be 9/10ths of nothing left in the Ltd Co bank account when the OP closes down his Ltd Co. This seems a much better route to me than simply rolling over and just paying >£10k to Mr Darling.

IANAA etc.........

[Fred Bloggs]

Another point i would like to make is that my contract work ceased in Apr08 since i have picked up a permie job so i have been considering winding up this Ltd company as it is no longer use to me.

The route out of this is pretty obvious to me.

[ASB]

I always thought that too but this article throws some doubt on the subject.

http://www.contractoruk.com/004376.html

I don't really think it does to be honest. The events it refers to all happen before the company is struck off. Certainly a lot can happen during the process before permission to dissolve is obtained. This is basically thier last chance.

[Qdos Contractor]

And he'd be better off with PCG than QDOS

Loving your subtlety.

[Sausage Surprise]

Thanks ASB

I am not currently being reviewed by HMRC for starters.

So basically i have two routes to choose:

1) If the reviewer comes back that i am most likely outside IR35 + i can get a client's statement regarding the role and project in question also to back that it falls outside IR35, then i will leave things as is and carry on as usual. Otherwise;

2) I will just come clean and declare to HMRC that i have made an honest mistake and i would like to correct all my accounts including the associated fines, penalties and interest charges.

Another point i would like to make is that my contract work ceased in Apr08 since i have picked up a permie job so i have been considering winding up this Ltd company as it is no longer use to me.

In future, if i do pick up any contract work, i will make sure terms are stated in the contract or better just get an accoutant to do all my work.

This is a wind up isn't it?

[malvolio]

Loving your subtlety.

Horses for courses. Both you and they (and various others) provide insurance cover, if that's all you want. Doesn't mean they are directly comparable, that's all.

[GreenerGrass]

Does your client dictate exactly what work you do, and how you do it? Or is there a list of jobs that need to be completed, and you pick up the jobs you want to to and get on with them by yourself.

I've always thought that is a ridiculous test of whether someone is an employee or not, excepting perhaps the "and how you do it" bit.
Think about it in terms of clients explaining what they want doing with contractors/self employed in any other industry e.g. construction, architecture etc.
A project manager giving detailed instructions to contractors/self employed tradesmen building a house does not make them employees.
You can't have a tiler saying "I'll stick the tiles up but I don't fancy doing the grouting, someone else can do it".
Or think of the sometimes extensive input a client has on a house design with an architect, that doesn't mean the architect is their employee.

[malvolio]

Actually if we could ever nail a clean definition of "Control" a lot of the contractual grief surrounding freelancers would go away. All the employment laws are based around control, and all the tax laws are based around employment status. And "Control" itself is largely derived from the 19th Century concept of Master/Servant where the employed servant was legally obliged to do what his master told him, unlike a hired tradesman engaged by the Master who wasn't.

Where it goes wrong is that the two are not aligned; if they were there would be no such thing as "deemed employment", nor would S44-7 (S143c as was) be needed to allocate responsibility for unpaid taxes.

Sadly that all seems a step to far for the various interested parties.

[djhns]

I'm getting really stressed.

I have contacted a few organisations but none of them are willing to take on my case. That is help me adjust my accounts.

Any recommendations guys? much thanks.

[Fred Bloggs]

Any recommendations guys? much thanks.

You're either really dim or a Troll, I can't decide. I gave you a sensible way out of this a good few posts back. It's upto you now, nobody else can do this for you.