Unsure if IR35 will affect my business

[whitelined]

I've been contracting for over 15 years now, usually with one company at a time. For past year I've reached out and brought in my own work from contacts I know. This work is fixed price work for services, we agree price, they send over a purchase order and I complete work, raise invoice, then get paid - I own all my equipment and software. I am now thinking of doing this full time instead of doing full time contracts. Surely this new way of working falls outside of the IR35 regulations?

[eek]

I've been contracting for over 15 years now, usually with one company at a time. For past year I've reached out and brought in my own work from contacts I know. This work is fixed price work for services, we agree price, they send over a purchase order and I complete work, raise invoice, then get paid - I won all my equipment and software. I am now thinking of doing this full time instead of doing full time contracts. Surely thia new way of working falls outside of the IR35 regulations?

Nope - as has been shown in the past each contract is subject to the IR35 regulations. It's possible to have 3 part time contracts (as is often the case with specialists in the NHS) where 1 is outside IR35 and the other 2 are inside.

It all depends on the view of your end client, how much HMRC have scared that end client and your work practices.

[ChimpMaster]

Sounds well clear outside of IR35. Fixed price work is a big factor, and that you get paid once the work is done.

But the clients will need to give you a Status Determination Statement for each contract or piece of work that you carry out.

[jamesbrown]

Currently, it almost certainly does. Post April 2020, it depends whether the client agrees, assuming they aren’t a small client. But they should agree - it’s very hard for fixed price work to be inside.

[whitelined]

Thanks for the replies. I'm working with a lot of smaller engineering companies, rather than the big ones I'd work full time. All of them definitely under 50 employees - most have 5-10 people - and probably under the £10 million turnover, but worth checking.

[TwoWolves]

This question highlights how utterly bonkers the IR35 legislation really is.

Whilst your operation is clearly unaffected [outside] the clients will still have to issue an SDS.

What next, will granny have to raise one when she hires a builder to fix her roof?

[jamesbrown]

Thanks for the replies. I'm working with a lot of smaller engineering companies, rather than the big ones I'd work full time. All of them definitely under 50 employees - most have 5-10 people - and probably under the £10 million turnover, but worth checking.

Probably BAU for you then. No SDS for small companies (some complexity with subsidiaries though). Little chance of being inside w/ fixed price work, unless they take a policy decision.

[CheeseSlice]

This question highlights how utterly bonkers the IR35 legislation really is.

Whilst your operation is clearly unaffected [outside] the clients will still have to issue an SDS.

What next, will granny have to raise one when she hires a builder to fix her roof?

Not granny, but if she's in a leasehold flat then the property management company may have to when engaging a local roofer.

I do wonder if a car breakdown insurance company or boiler insurance scheme may need to issue an SDS when they aren't using their own repair teams and decide to use a local independent trader.

[Anubis]

I do wonder if a car breakdown insurance company or boiler insurance scheme may need to issue an SDS when they aren't using their own repair teams and decide to use a local independent trader.

I assume they would if the company had over 50 employees. Bring in a few extra independents to help out during busy periods would require them to say if they are "off payroll and ongoing" inside staff or if they are simply there as outside helping out.