Reply to: IR35 and Multiple clients at the same time

[eek]

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And will eventually be implemented in the way HMRC wanted it implemented.

[GhostofTarbera]

IR35 is 20 years old

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[CheeseSlice]

With IR35 coming soon

IR35 is 20 years old

[jamesbrown]

Unless the end client is a small private sector client then it remains with the contractor.

Or a fully overseas supply chain

Anyway, agree with eek that having multiple clients is a secondary factor or "in business" indicator and won't make much difference w/r to the status of a specific contract, especially as described by the OP where it isn't even that (it's some random fluff on the side and completely irrelevant to the status of a specific IT contract).

[Old Greg]

Once again and for the millionth time - multiple clients has nothing to do with IR35 - IR35 relates to the relationship you have with the end client for that particular contract.

And come April the person determining whether the contract is inside or outside IR35 won't be the contractor it will be the end client.

I would hazard a guess that the risk of IR35 investigation has something to do with multiple clients.

Also QDOS in 2016 was saying:

A. Whilst performing services to multiple clients alongside your main contract is positive from an IR35 perspective. It is unlikely to be considered a determining factor to place you outside of IR35 in isolation.

IR35 For Contractors | IR35 Advice Centre | Qdos Contractor

[myself01]

You've gotten a clear answer to your IR35 question, but this jumped out at me. Don't start new business to try avoid/reduce tax - do it because you have researched the market and have determined there is a market and money to be made.

So, if you believe you do have something special here, do it, but not because of IR35.

(personally, I'm not sure there is a market for such a service - helping friends out is one thing - getting strangers to pay for it is one huge step further)

Hi,

I agree with your point, and no I am not trying to setup a property investment consultancy business to save tax. I am anyways setting this business because I have number of clients asking me for this service already. So I need to open another company to do this, and during this I had the thought that should I open another ltd company to do this, or should I do this in my existing IT contracting Ltd company.

I did have a thought about the IR35 implications during this thought process and I was not sure hence I asked. Plus the flip side of doing it through the IT company is that I would need to charge VAT to my property business clients. So I was in between two minds.

The statement above saying that IR35 is dependent on the working relations with the client clarifies it for me as it means regardless of whether I have one client or many in parallel, and regardless of them being in different trade .. its the end client for every contract that will decide whether that particular contract is inside or outside IR35. Just having more than one client at a time does not determines IR35 status any more.

Which means I do not necessarily gain anything by doing property advisory business through IT company.

Regards.

[Paralytic]

...and the only reason I am even considering this is if it helps with IR35 status at a later date by having multiple clients at the same time .. though i am not 100% sure of this.

You've gotten a clear answer to your IR35 question, but this jumped out at me. Don't start new business to try avoid/reduce tax - do it because you have researched the market and have determined there is a market and money to be made.

So, if you believe you do have something special here, do it, but not because of IR35.

(personally, I'm not sure there is a market for such a service - helping friends out is one thing - getting strangers to pay for it is one huge step further)

[Craig@Clarity]

Which will be what, 10% of current contracts maximum?

Could be...Which would be around 1/2 mil SME's. Probably less now in the current pandemic!

[DaveB]

Unless the end client is a small private sector client then it remains with the contractor.

And there are two questions in the CEST that specifically asks whether the contract allows you to do work for other clients and whether you would have to ask the clients permission first that are positive indicators of an outside status using that tool.

[northernladuk]

Unless the end client is a small private sector client then it remains with the contractor.

For now.......

[northernladuk]

Thanks a lot for clarifying that to me Sir .. your one statement helped clear my mind once for all.

Kind Regards.

I bet it didn't.

[eek]

Unless the end client is a small private sector client then it remains with the contractor.

Which will be what, 10% of current contracts maximum?

[Craig@Clarity]

And come April the person determining whether the contract is inside or outside IR35 won't be the contractor it will be the end client.

Unless the end client is a small private sector client then it remains with the contractor.

[myself01]

Thanks a lot for clarifying that to me Sir .. your one statement helped clear my mind once for all.

Kind Regards.

[eek]

Once again and for the millionth time - multiple clients has nothing to do with IR35 - IR35 relates to the relationship you have with the end client for that particular contract.

And come April the person determining whether the contract is inside or outside IR35 won't be the contractor it will be the end client.