Originally posted by edison
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Contractor appointment as Director / Officer under IR35? Impact on contractor status"
Collapse
-
-
Originally posted by ukDunc View PostHi all - I am a chartered accountant providing consulting services to currently 4 clients on day rates through my limited company. One of the my clients wants me to sit on the Board, but I am fairly sure this will jeopardise my position with that client (and perhaps all my clients?) under IR35? I dont want to suddenly be paying income tax on the invoicing that my company does to the clients, so does anyone have any experience of this?
For example, could my company be appointed as the Director on the client company instead of me personally? Would that work?
Thanks in advance!
Leave a comment:
-
Originally posted by northernladuk View PostIndeed, which is never what is meant when people state 'under IR35' so best never using the term.
But, I'm a pedant too, so, as you were...
Leave a comment:
-
Originally posted by eek View PostUnder = subject to = inside.
Leave a comment:
-
Except this is not actually IR35. If a director of one company is appointed to a substantive role in another one, any income from that appointment must be taxed as salary. And has been for a long time.
But even with IR35 as the baseline, you cannot get around personal service and D&C anyway.
Leave a comment:
-
There is no such thing as 'under' IR35. You are inside or outside.
Leave a comment:
-
I've seen contractors advertise that they perform "Financial Director Services", maybe ask one of them. Personally, I'd see it as dodgy ground where you are contracting to a company that you are also a director of. Sounds very much like a tax avoidance wheeze.
Leave a comment:
-
Originally posted by jayn200 View PostI think you'd be better off asking this question on an accounting forum where you'll likely get multiple responses from experienced qualified accountants rather then here where likely you'll get a bunch of IT contractors giving you a hard time.
On one level it's simple as as an officer of a company you are definitely inside IR35 but also your relationship with the company will be entirely different so that in a lot of ways is not surprising. And every contract is different so being a director of 1 company won't impact your relationship with your other clients unless those clients object to the idea.
The great unknown is whether a company should be a director of another company when it's a particular person doing all the work. I suspect it's not a problem but it would be an interesting (and expensive) case were HMRC to get interested - and that question would be one for an accountancy forum rather than an IT one.
It's also worth thinking of how it might look to customers of the end client - I know when I see opaque management structures I rapidly knock them off the to be contacted immediately list.
And equally as a client of yours I would probably have less objection to you personally being a director of a company than my accountancy firm being a director of a unrelated / competing company.Last edited by eek; 9 December 2020, 09:02.
Leave a comment:
-
I think you'd be better off asking this question on an accounting forum where you'll likely get multiple responses from experienced qualified accountants rather then here where likely you'll get a bunch of IT contractors giving you a hard time.
Leave a comment:
-
Originally posted by ukDunc View PostHi all - I am a chartered accountant providing consulting services to currently 4 clients on day rates through my limited company. One of the my clients wants me to sit on the Board, but I am fairly sure this will jeopardise my position with that client (and perhaps all my clients?) under IR35? I dont want to suddenly be paying income tax on the invoicing that my company does to the clients, so does anyone have any experience of this?
For example, could my company be appointed as the Director on the client company instead of me personally? Would that work?
Thanks in advance!
Leave a comment:
-
Contractor appointment as Director / Officer under IR35? Impact on contractor status
Hi all - I am a chartered accountant providing consulting services to currently 4 clients on day rates through my limited company. One of the my clients wants me to sit on the Board, but I am fairly sure this will jeopardise my position with that client (and perhaps all my clients?) under IR35? I dont want to suddenly be paying income tax on the invoicing that my company does to the clients, so does anyone have any experience of this?
For example, could my company be appointed as the Director on the client company instead of me personally? Would that work?
Thanks in advance!
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: