Inside IR35??

[claire79]

Hi this is my first post and just really want to clarify. My Ex partner set up a LTD company (with his father) working self employed. He has a baber shop and is a barber. Last year his father put him on a contract stating he earns £65 per week to avoid paying maintenance for his child (he now pays £5.00 per week). He runs the business 100% and employes two other barbers. He also works well over 40 hours per week and this is his only job. It's becoming difficult to receive anything from him as he is self employed so the Csa can't force him to pay. I'm sure he should be on PAYE. He has had the company for nearly 10 years

[LisaContractorUmbrella]

Hi this is my first post and just really want to clarify. My Ex partner set up a LTD company (with his father) working self employed. He has a baber shop and is a barber. Last year his father put him on a contract stating he earns £65 per week to avoid paying maintenance for his child (he now pays £5.00 per week). He runs the business 100% and employes two other barbers. He also works well over 40 hours per week and this is his only job. It's becoming difficult to receive anything from him as he is self employed so the Csa can't force him to pay. I'm sure he should be on PAYE. He has had the company for nearly 10 years

Do you mean £65 per week or per day Claire79?

[northernladuk]

The search below is all CSA related posts in this part of the forum. Have a read and I think you will find some answers....

CSA site:forums.contractoruk.com/accounting-legal - Google Search

[claire79]

Do you mean £65 per week or per day Claire79?

He earns £65 per week apparently

[scooby]

LOL, i think someone is trying to stitch someone up here!!

Clarifying facts before shopping him?

[Kanye]

Just because he has ran the business for 10 years doesn't put him inside IR35.

He's doing exactly what a LTD CO is set up for, and is in no way a disguised employee. He has full control of his job and tools, nobody having any control over him, and he could switch himself out for another barber tomorrow if he wanted.

So he's rock solid outside of IR35 if I read your correctly.

However, I assume the CSA would take dividends into account and not just the basic wage. That will all be declared and I think also available at companies house, no?

[claire79]

LOL, i think someone is trying to stitch someone up here!!

Clarifying facts before shopping him?

Unfortunately my Ex partner is playing hard ball, I've received less than £200 in 7 years as he does everything not to. Don't want to stitch him up but need more info instead of just jumping to conclusions

[northernladuk]

I read between the lines (seems the lines are so confusing) that the business is the LTD of the son, the barbers shop was the father, so what the OP is trying to imply is that the son works for the father at the salon but instead of getting a wage is getting his LTD paid and then hiding behind that.

That alone I would have thought was tax evasion before even getting to IR35, on which point I would say he is inside (if you can even be that in this situation) as he is a full time employee of his father. He is using LTD to reduce tax/evade paying CSA.

How you prove it in a family business god only knows. I expect much of it will be cash in hand.

[scooby]

Unfortunately my Ex partner is playing hard ball, I've received less than £200 in 7 years as he does everything not to. Don't want to stitch him up but need more info instead of just jumping to conclusions

If that is the case, then he NEEDS stitching up.

[claire79]

I read between the lines (seems the lines are so confusing) that the business is the LTD of the son, the barbers shop was the father, so what the OP is trying to imply is that the son works for the father at the salon but instead of getting a wage is getting his LTD paid and then hiding behind that.

That alone I would have thought was tax evasion before even getting to IR35, on which point I would say he is inside (if you can even be that in this situation) as he is a full time employee of his father. He is using LTD to reduce tax/evade paying CSA.

How you prove it in a family business god only knows. I expect much of it will be cash in hand.

Yes he is paid a wage of £65 per week on self employment through his father, I'm sure a lot of it is cash jobs but I'm not going to waste my time trying to prove that. Dividend payments are going to be looked at through a tribunal as they've not yet been declared for income purposes, he is refusing to give company accounts so he can be assessed fairly.... Seems like he has something to hide on that front. I thought if you had a ltd company you couldn't be classed as self employed if you provided the exact same service the company provided? For example he could do the company accounts and that would be fine for self employment earnings but as he is a barber in a barber shop he should be PAYE and paying normal tax and not through dividends?