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Ir35 exemption if company < 200 staff

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    Ir35 exemption if company < 200 staff

    Hi All,

    My colleague claims that if a company has less than 200 members of staff then contractors are automatically outside of IR35 while working for this company. I have never heard of this rule before. Can anyone shed some light on this please?

    Thanks
    Phil

    #2


    No.

    Your "colleague" is confused with the small companies exemption for when the contractor's PSC decides IR35 status, rather than the supply chain above it. There are no "exceptions" for IR35 itself.

    Comment


      #3
      The lack of thought and effort people put in to IR35 is frightening.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        I don't think that's correct. If end client qualifies as a small company then IR35 status determination falls on the contractor not on the end client.

        Comment


          #5
          Originally posted by JHamp82 View Post
          I don't think that's correct. If end client qualifies as a small company then IR35 status determination falls on the contractor not on the end client.
          Correct. Contractor must still prove the contract is outside IR35 if investigated though. Arguably far easier to gather evidence and explain IR35 to your hiring manager in a small company though.
          The greatest trick the devil ever pulled was convincing the world that he didn't exist

          Comment


            #6
            Originally posted by LondonManc View Post

            Correct. Contractor must still prove the contract is outside IR35 if investigated though. Arguably far easier to gather evidence and explain IR35 to your hiring manager in a small company though.
            I'd agree to some extent but the smaller it is, particularly startups it's very difficult to come in do a single task without interference from the client and go so can be IR35 nightmares. They often need all hands to the pump with a can do attitude to cover anything that crops up. Cover for other staff if they are off, swap to new tasks that become priority etc. Even if you can get the ear of the right person to explain it there is a good chance it doesn't fit what they want. There is the D&C issues and it's very unlikely a small company will understand or accept D&C.

            Bit of a double edged sword sometimes.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #7
              Originally posted by northernladuk View Post

              I'd agree to some extent but the smaller it is, particularly startups it's very difficult to come in do a single task without interference from the client and go so can be IR35 nightmares. They often need all hands to the pump with a can do attitude to cover anything that crops up. Cover for other staff if they are off, swap to new tasks that become priority etc. Even if you can get the ear of the right person to explain it there is a good chance it doesn't fit what they want. There is the D&C issues and it's very unlikely a small company will understand or accept D&C.

              Bit of a double edged sword sometimes.
              Largely depends what you're brought in for I suppose and what your broader skills are.
              The greatest trick the devil ever pulled was convincing the world that he didn't exist

              Comment


                #8
                Originally posted by LondonManc View Post

                Largely depends what you're brought in for I suppose and what your broader skills are.
                Absolutely.
                'CUK forum personality of 2011 - Winner - Yes really!!!!

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