Diversifying the business

[BlueSharp]

IR35 is decided on a per-contract basis. All you are doing is transferring the risk from YourCo to NewAgencyCo. Perhaps stop kidding yourself about IR35 and focus on the business case instead.

I agree that's why it was asked as a side question. Was really interested in others sharing their experience. Perhaps we will need to go to an RC forum and dig a little deeper there!

[Contreras]

Thanks for the advice article link, that's what I was looking for. Initially there could be issues but as the agency grew they would not become an issue. (Been in business in your own right, multi income streams have been successfully argued as pointers outside of IR35). My contracts and working practices are all reviewed as being outside, unfortunately hector could still disagree or insurance not pay out due to the non standard arrangement.

IR35 is decided on a per-contract basis. All you are doing is transferring the risk from YourCo to NewAgencyCo. Perhaps stop kidding yourself about IR35 and focus on the business case instead.

[BlueSharp]

HM Revenue & Customs: IR35: Countering Avoidance in the Provision of Personal Services


As an IR35 avoidance measure - forget it.

If your wife want to help find you work - fine, but it doesn't need a separate co.

If you want to run an agency - fine, so long as you have the experience to do it.

Thanks for the advice article link, that's what I was looking for. Initially there could be issues but as the agency grew they would not become an issue. (Been in business in your own right, multi income streams have been successfully argued as pointers outside of IR35). My contracts and working practices are all reviewed as being outside, unfortunately hector could still disagree or insurance not pay out due to the non standard arrangement.

My wife does not have experience, but we know people who we could bring in P.T to help who do.

Shame about some of the troll comments.

[Contreras]

Well there would be if I owned a sizeable percentage of the agency and was paid divs...

HM Revenue & Customs: IR35: Countering Avoidance in the Provision of Personal Services

The IR35 provisions are triggered where:

A worker provides contracting services to a client company through an 'intermediary'. The company is an intermediary where either:

the worker alone, or with one or more associates, has a 'material interest' in the company: this is defined as ownership of more than 5% of the ordinary share capital of the company, entitlement to more than 5% of the company's dividends, or, where the company is a close company, entitlement to more than 5% of the assets on winding up, or ...

As an IR35 avoidance measure - forget it.

If your wife want to help find you work - fine, but it doesn't need a separate co.

If you want to run an agency - fine, so long as you have the experience to do it.

[northernladuk]

Well there would be if I owned a sizeable percentage of the agency and was paid divs...

That comment is even more ridiculous than No2Politics's comment and he said that in jest!

Please post the name of this new agency so I can avoid it like the plague.

I would forget about your wife's business and start looking at trying to understand your own first.

[BlueSharp]

I would suggest that you attempt to understand at least the basics of regulations that apply to you before you even attempt to start working with other people who will know a whole lot more about it than you seem to.

I smell yet another agency that doesn't have a scooby about IR35... great

Well there would be if I owned a sizeable percentage of the agency and was paid divs...

[No2politics]

Smells like a wind up ....

Correct!

[MyUserName]

Please read the information under CUK navigation before you write such silly statements.

Smells like a wind up ....

[SueEllen]

I opted out of IR35 in this contract

Please read the information under CUK navigation before you write such silly statements.

[No2politics]

I opted out of IR35 in this contract

[jmo21]

I would suggest that you attempt to understand at least the basics of regulations that apply to you before you even attempt to start working with other people who will know a whole lot more about it than you seem to.

I smell yet another agency that doesn't have a scooby about IR35... great

They all have to start somewhere!

[northernladuk]

I Would there be any risk to the new limited company from Hector in terms of IR35.

I would suggest that you attempt to understand at least the basics of regulations that apply to you before you even attempt to start working with other people who will know a whole lot more about it than you seem to.

I smell yet another agency that doesn't have a scooby about IR35... great

[Taita]

I have been contracting now for a while now and I'm planning on growing the business portfolio. Due to a change in circumstances, I'm looking at helping my wife start a business where she can work from home. The current idea is diversifying into recruitment consultancy that specializes in my skill set and look for placements for me initially. As the company grows we will look to place others or consult with other contracts who might like to try the same diversification route.

Has anyone tried this who would like to share their experiences?

As a side thought: If she sets up as a limited company agency and my company is paid through her company like a proper PSC/Agency/ClientCo relationship, but myCo's fee is only 1/5 of it's normal fee (to help reinvest in the agency business). Would there be any risk to the new limited company from Hector in terms of IR35.

Does your wife have recruitment consultancy experience?

[BlueSharp]

I have been contracting now for a while now and I'm planning on growing the business portfolio. Due to a change in circumstances, I'm looking at helping my wife start a business where she can work from home. The current idea is diversifying into recruitment consultancy that specializes in my skill set and look for placements for me initially. As the company grows we will look to place others or consult with other contracts who might like to try the same diversification route.

Has anyone tried this who would like to share their experiences?

As a side thought: If she sets up as a limited company agency and my company is paid through her company like a proper PSC/Agency/ClientCo relationship, but myCo's fee is only 1/5 of it's normal fee (to help reinvest in the agency business). Would there be any risk to the new limited company from Hector in terms of IR35.