Reply to: Inside IR35??

[LisaContractorUmbrella]

From what I have read Claire79, yours is a complicated situation so my advice to you would be to seek guidance from a professional - we are more than happy to try and help you out on here but we are not lawyers and I think that's really what you need

[claire79]

To the OP. You need to clarrify what his father has to do with this and why his father has given his son a contract. It is seriously muddying the waters when it comes to advice.

His father is 50/50 shareholder, he has his own self employed job elsewhere. The father has obviously done a contract where he confirms his son is earning a weekly wage of £65. I'm not sure if it's easier as he wouldn't need to send a tax return to confirm as the contract is just as good

[claire79]

No I dont think he is inside IR35. He is running a legitimate business and not a disguised employee. Even if he were, what would it matter to you? Are you going to blackmail him? Try to ruin his new life?

My understanding is that for every penny you take off him (to give you) you get the same penny less in benefits. So other than spite, what is to be gained? He has obviously moved on started a new life, and I would recommend you do the same. ( 7 years later......)

For your information I am not on benefits.... Unfortunately for my Ex over £12,000 of maintenance is owed due to him refusing to pay anything... Not to the secretary of state. We had an arrangement in 2005 and he gave me £100 per month, that lasted for several months. He has had 100% access to HIS child at all times which he stopped but now my daughter is old enough she goes to visit him. There is no blackmail just want what's fair for his child

[escapeUK]

What a load of crap. Too many points to pick up so will just leave it at that.

Strangely I think that about every post you make fella. This is the professional forum so therefore I am resisting taking the topic into territory it should not go.

[northernladuk]

To the OP. You need to clarrify what his father has to do with this and why his father has given his son a contract. It is seriously muddying the waters when it comes to advice.

[northernladuk]

No I dont think he is inside IR35. He is running a legitimate business and not a disguised employee. Even if he were, what would it matter to you? Are you going to blackmail him? Try to ruin his new life?

My understanding is that for every penny you take off him (to give you) you get the same penny less in benefits. So other than spite, what is to be gained? He has obviously moved on started a new life, and I would recommend you do the same. ( 7 years later......)

What a load of crap. Too many points to pick up so will just leave it at that.

[mudskipper]

No I dont think he is inside IR35. He is running a legitimate business and not a disguised employee. Even if he were, what would it matter to you? Are you going to blackmail him? Try to ruin his new life?

My understanding is that for every penny you take off him (to give you) you get the same penny less in benefits. So other than spite, what is to be gained? He has obviously moved on started a new life, and I would recommend you do the same.

Where were benefits mentioned? OP may be earning.

To OP:

I think you need to be clear about the difference between self-employed and director of a limited company. If he is running a business, the ltd company would seem the right vehicle, and he would be outside IR35. If his father is running a business, and paying him through a different limited company, then that would seem to fall into the avoidance scenario.

My understanding is that both salary and dividends should be taken into account when calculating maintenance.

[escapeUK]

No I dont think he is inside IR35. He is running a legitimate business and not a disguised employee. Even if he were, what would it matter to you? Are you going to blackmail him? Try to ruin his new life?

My understanding is that for every penny you take off him (to give you) you get the same penny less in benefits. So other than spite, what is to be gained? He has obviously moved on started a new life, and I would recommend you do the same. ( 7 years later......)

[claire79]

Why not look him up here. As a director you should be able to find out what his company is called and then look at some of the basic financials...

Company Director Check - free company director search

I found the information a few months back, also downloaded from companies house. To be honest I don't understand the terminology, ie if the company is in profit or loss, there are £19,000 in liabilities but I don't even know what that means or how to understand the accounts. Thanks for the direction though

[northernladuk]

Why not look him up here. As a director you should be able to find out what his company is called and then look at some of the basic financials...

Company Director Check - free company director search

[claire79]

If he's genuinely in business on his own, then no. If he's a disguised employee, then he should be subject to IR35. It's not black and white though, there's no way to give a definitive answer as to whether he's doing anything wrong without being more closely involved. If he's trying to argue that he lives on £65 a week though, and his mortgage is £600 a month, then you'd have a fair grounding for believing he's not declaring all his income!

I do know that the CSA can approach accountants for financial information, we are not permitted to let the client know we've been contacted, and we are required to give details of salary and dividend payments.

Yes he has a mortgage with his partner, the house was purchased for £243,000 10 years ago. His partner wasn't working at the time so my Ex fiddled his earnings to get the mortgage. they also have two children so yes I believe he hasn't declared his earnings. I'm not sure if he has an accountant or if he does the books himself, he is also company secretary

[northernladuk]

I would agree withwhat Clare says but there is so much wrong with this situation I would report him for tax evasion and get HMRC on the case and they can decided. I would expect being a family business being run this way for so long things will not be done properly so closer to evasion than avoidance in reality.

[Clare@InTouch]

I just want to have facts straight first, is it tax evasion? Obviously if he's self employed but hiding behind his ldt company to receive dividends and pay less tax then I'd do it. If I could clarify what he can or shouldn't be doing then that would help so much

If he's genuinely in business on his own, then no. If he's a disguised employee, then he should be subject to IR35. It's not black and white though, there's no way to give a definitive answer as to whether he's doing anything wrong without being more closely involved. If he's trying to argue that he lives on £65 a week though, and his mortgage is £600 a month, then you'd have a fair grounding for believing he's not declaring all his income!

I do know that the CSA can approach accountants for financial information, we are not permitted to let the client know we've been contacted, and we are required to give details of salary and dividend payments.

[claire79]

Professional opinion - dob him in - wrong on so many levels

I just want to have facts straight first, is it tax evasion? Obviously if he's self employed but hiding behind his ldt company to receive dividends and pay less tax then I'd do it. If I could clarify what he can or shouldn't be doing then that would help so much

[LisaContractorUmbrella]

Professional opinion - dob him in - wrong on so many levels