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Outsourcing to people over the web & IR35

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    Outsourcing to people over the web & IR35

    I do a bit of internet marketing which is starting to bring in bits of cash here and there.

    I'm thinking of changing the ownership of my domains/websites to my Ltd company and getting my checks and other payments made out to my Ltd instead of me personally.

    Would this help my IR35 status as a contractor seeing as my business is doing more than providing IT services to just one client?

    Does working on my sites and blogs count as having more than 1 client? The sites belong to me but they could be seen as revenue generating projects for my company. If necessarry I can outsource myself to people who will pay through places like elance and rent-a-coder then I would definitely be working for more than 1 client although I'm not sure how the legally binding contracts work for people over the web in different parts of the world .

    I'm thinking of putting all this into a business plan and offering these services through a website that represents my Ltd as a freelance internet marketing/IT consulting service.

    I'm wondering if this will have an effect in an IR35 situation where I will clearly be working for more than 1 client on more than 1 project even if my 9-5 day 5 days a week is taken up on 1 client site.

    If it won't help then I won't bother because my IFA advised me to trade as self employed for internet marketing and I'll be able to claim even further tax deductions for the self employment business.

    Anyone able to shed any light on this?
    "Is someone you don't like allowed to say something you don't like? If that is the case then we have free speech."- Elon Musk

    #2
    In theory it won't help. They'll just treat the contract part of your income as possibly liable to IR35, and everything else as not. However it must add a bit of weight to your "I'm a real business" defence, even if it's not significant.

    I'm not sure what you gain as a sole trader. I would think you're better off putting everything through one company. It could turn into a full time thing down the line.
    Will work inside IR35. Or for food.

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      #3
      Originally posted by Jog On
      I do a bit of internet marketing which is starting to bring in bits of cash here and there.

      I'm thinking of changing the ownership of my domains/websites to my Ltd company and getting my checks and other payments made out to my Ltd instead of me personally.

      Would this help my IR35 status as a contractor seeing as my business is doing more than providing IT services to just one client?

      Does working on my sites and blogs count as having more than 1 client? The sites belong to me but they could be seen as revenue generating projects for my company. If necessarry I can outsource myself to people who will pay through places like elance and rent-a-coder then I would definitely be working for more than 1 client although I'm not sure how the legally binding contracts work for people over the web in different parts of the world .

      I'm thinking of putting all this into a business plan and offering these services through a website that represents my Ltd as a freelance internet marketing/IT consulting service.

      I'm wondering if this will have an effect in an IR35 situation where I will clearly be working for more than 1 client on more than 1 project even if my 9-5 day 5 days a week is taken up on 1 client site.

      If it won't help then I won't bother because my IFA advised me to trade as self employed for internet marketing and I'll be able to claim even further tax deductions for the self employment business.

      Anyone able to shed any light on this?
      I doubt it would help that much as it would be like moonlighting rather than a continuity of your BAU business practice. The IR want to see a series of short term, preferably fixed paid contracts that are carried out on random days or short spells rather than a 9-5 working week before they will accept that your business is outside IR35 without further enquiry. The fact that they won't win, won't deter them one bit.
      Last edited by Denny; 13 April 2007, 20:36.

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