Business Entity Tests

[socialworker]

Thanks to all those who helpfully replied on this. The only conclusion I can come to is that it is a gamble, you can lower the risk by taking professional advice and in the end it depends on your own attitude to risk.

[Kate Cottrell]

You can get certainty

Thanks to all those who helpfully replied on this. The only conclusion I can come to is that it is a gamble, you can lower the risk by taking professional advice and in the end it depends on your own attitude to risk.

To get some certainty here you should ask the client to confirm your working practices. Ask them to confirm in writing all the issues e.g. you can send a substitute and you will pay the substitute and most importantly the control issues (what, where, when and how) and to confirm that they see you as a genuine business rather than an agency temporary resource. As before if you are a social worker doing the usual business of social workers then it is highly unlikely that you are outside IR35. Your attidude to risk only comes into it if you decide to ignore the facts. If you are investigated you will need to demonstrate that you have taken "reasonable care" to protect from penalties.

[LisaContractorUmbrella]

Thanks to all those who helpfully replied on this. The only conclusion I can come to is that it is a gamble, you can lower the risk by taking professional advice and in the end it depends on your own attitude to risk.

Not really no - your working practises are what they are (personally I think it highly unlikely that you could fall outside IR35) and no amount of contract tweaking or advice will change that. If you are happy to take the risks that's fine but make sure you put aside all the money that should have been paid to HMR&C, had you worked inside, and then add a bit more and accept that you will lose it all should there be an investigation

[northernladuk]

Thanks to all those who helpfully replied on this. The only conclusion I can come to is that it is a gamble, you can lower the risk by taking professional advice and in the end it depends on your own attitude to risk.

Question is do you fully understand the risk. To make a decision on how much risk you are willing to take means you must know how much it will cost you when it goes wrong. Do you know this? If not then you are not taking a risk, you are running in blindly.

[socialworker]

Question is do you fully understand the risk. To make a decision on how much risk you are willing to take means you must know how much it will cost you when it goes wrong. Do you know this? If not then you are not taking a risk, you are running in blindly.

I do know roughly speaking what the risks are NLUK - not only paying tax on deemed payments but also risk of penalties not to mention putting myself on HMRC radar as iffy, which is why I am not only asking on here but doing my own research on the HMRC website, various guides, tests etc and as I have said would not actually treat myself as outside unless taking professional advice and insurance first. I think on balance for the rest of this assignment I will stay on full PAYE basis and then see if I can get properly project based work which will be a safer bet.

[LisaContractorUmbrella]

I do know roughly speaking what the risks are NLUK - not only paying tax on deemed payments but also risk of penalties not to mention putting myself on HMRC radar as iffy, which is why I am not only asking on here but doing my own research on the HMRC website, various guides, tests etc and as I have said would not actually treat myself as outside unless taking professional advice and insurance first. I think on balance for the rest of this assignment I will stay on full PAYE basis and then see if I can get properly project based work which will be a safer bet.

Wise decision that man

[northernladuk]

I do know roughly speaking what the risks are NLUK - not only paying tax on deemed payments but also risk of penalties not to mention putting myself on HMRC radar as iffy, which is why I am not only asking on here but doing my own research on the HMRC website, various guides, tests etc and as I have said would not actually treat myself as outside unless taking professional advice and insurance first. I think on balance for the rest of this assignment I will stay on full PAYE basis and then see if I can get properly project based work which will be a safer bet.

I mean how much it is going to cost you.. not the process if you get caught. You need to know how many pounds shillings and pence this will cost you. THEN you know what you are playing with and can make a decision.

I do think you last line is a very good decision personally so good on you if that is what you are going to do.

[socialworker]

I mean how much it is going to cost you.. not the process if you get caught. You need to know how many pounds shillings and pence this will cost you. THEN you know what you are playing with and can make a decision.

I do think you last line is a very good decision personally so good on you if that is what you are going to do.

Yep feels like the right option. Plus the NLUK Certificate of approval!