How to avoid ir35 completely – what makes me a contractor/not contractor?

[bob36]

Where does the distinction lie between a company that provides services (such as a web design company) and being a contractor and earning through a limited company?

If I was classed as a web design business (with the definition being I provided fixed price projects to clients from my own premises) then ir35 would never even be a consideration.

At the moment I lie somewhere between the two – I do work as a web design company for a number of clients but then also work as a contractor sometimes (up to 3 month projects on client premises). Would this normally be enough to class myself outside ir35 completely without worrying about the details of contracts at each place I might work?

[northernladuk]

I am a director of a limited company selling my services to a client (agent). I am therefore supplying services. It is only the client/agent that call me a contractor.

From your explaination I would say they are both the same thing. The problem is that you are not thinking about it as a directory of your own ltd selling your services.

The fact you are the only employee of your company and another web company has 5 doesn't make a difference I don't think. You are still both business's selling a product (service). The contracts are the sticking point to IR35.

IR35 is classed on a contract by contract basis. You could have 10 contracts on the go, each would have to be rated against IR35 on it's own merits.

If you have two contracts running together. 2 days with a client delivering a product to him as you dictate with no direction etc that one would be out of IR35. If the other 3 days you worked for a lcient that said you had to be in at 9 leave at 5, book holidays, expenses and cannot substitute etc etc then that contract would fall in IR35.

[Wanderer]

I do work as a web design company for a number of clients but then also work as a contractor sometimes (up to 3 month projects on client premises). Would this normally be enough to class myself outside ir35 completely without worrying about the details of contracts at each place I might work?

You aren't a high value target, it's the permie-tractors who work on the one contract for 3 years that they are after.

I'd say you're probably completely outside IR35. If you have a load of different contracts then you can argue the point about each one of them (and probably win), wasting a load of Hector's time. Certainly the fixed price contracts (where you could subcontract the work if you choose to do so) are pretty bullet proof.