Inside IR35??

[LisaContractorUmbrella]

Professional opinion - dob him in - wrong on so many levels

[claire79]

Professional opinion - dob him in - wrong on so many levels

I just want to have facts straight first, is it tax evasion? Obviously if he's self employed but hiding behind his ldt company to receive dividends and pay less tax then I'd do it. If I could clarify what he can or shouldn't be doing then that would help so much

[Clare@InTouch]

I just want to have facts straight first, is it tax evasion? Obviously if he's self employed but hiding behind his ldt company to receive dividends and pay less tax then I'd do it. If I could clarify what he can or shouldn't be doing then that would help so much

If he's genuinely in business on his own, then no. If he's a disguised employee, then he should be subject to IR35. It's not black and white though, there's no way to give a definitive answer as to whether he's doing anything wrong without being more closely involved. If he's trying to argue that he lives on £65 a week though, and his mortgage is £600 a month, then you'd have a fair grounding for believing he's not declaring all his income!

I do know that the CSA can approach accountants for financial information, we are not permitted to let the client know we've been contacted, and we are required to give details of salary and dividend payments.

[northernladuk]

I would agree withwhat Clare says but there is so much wrong with this situation I would report him for tax evasion and get HMRC on the case and they can decided. I would expect being a family business being run this way for so long things will not be done properly so closer to evasion than avoidance in reality.

[claire79]

If he's genuinely in business on his own, then no. If he's a disguised employee, then he should be subject to IR35. It's not black and white though, there's no way to give a definitive answer as to whether he's doing anything wrong without being more closely involved. If he's trying to argue that he lives on £65 a week though, and his mortgage is £600 a month, then you'd have a fair grounding for believing he's not declaring all his income!

I do know that the CSA can approach accountants for financial information, we are not permitted to let the client know we've been contacted, and we are required to give details of salary and dividend payments.

Yes he has a mortgage with his partner, the house was purchased for £243,000 10 years ago. His partner wasn't working at the time so my Ex fiddled his earnings to get the mortgage. they also have two children so yes I believe he hasn't declared his earnings. I'm not sure if he has an accountant or if he does the books himself, he is also company secretary

[northernladuk]

Why not look him up here. As a director you should be able to find out what his company is called and then look at some of the basic financials...

Company Director Check - free company director search

[claire79]

Why not look him up here. As a director you should be able to find out what his company is called and then look at some of the basic financials...

Company Director Check - free company director search

I found the information a few months back, also downloaded from companies house. To be honest I don't understand the terminology, ie if the company is in profit or loss, there are £19,000 in liabilities but I don't even know what that means or how to understand the accounts. Thanks for the direction though

[escapeUK]

No I dont think he is inside IR35. He is running a legitimate business and not a disguised employee. Even if he were, what would it matter to you? Are you going to blackmail him? Try to ruin his new life?

My understanding is that for every penny you take off him (to give you) you get the same penny less in benefits. So other than spite, what is to be gained? He has obviously moved on started a new life, and I would recommend you do the same. ( 7 years later......)

[mudskipper]

No I dont think he is inside IR35. He is running a legitimate business and not a disguised employee. Even if he were, what would it matter to you? Are you going to blackmail him? Try to ruin his new life?

My understanding is that for every penny you take off him (to give you) you get the same penny less in benefits. So other than spite, what is to be gained? He has obviously moved on started a new life, and I would recommend you do the same.

Where were benefits mentioned? OP may be earning.

To OP:

I think you need to be clear about the difference between self-employed and director of a limited company. If he is running a business, the ltd company would seem the right vehicle, and he would be outside IR35. If his father is running a business, and paying him through a different limited company, then that would seem to fall into the avoidance scenario.

My understanding is that both salary and dividends should be taken into account when calculating maintenance.

[northernladuk]

No I dont think he is inside IR35. He is running a legitimate business and not a disguised employee. Even if he were, what would it matter to you? Are you going to blackmail him? Try to ruin his new life?

My understanding is that for every penny you take off him (to give you) you get the same penny less in benefits. So other than spite, what is to be gained? He has obviously moved on started a new life, and I would recommend you do the same. ( 7 years later......)

What a load of crap. Too many points to pick up so will just leave it at that.