Reply to: Can I avoid IR35 this way

[jamesc77]

Thanks for all the help. Looks like I'm looking for an accountant, an English teacher and applying for a job at HMRC

[Doggy Styles]

There is a method to retain 120% of what you invoice but I've said too much already.

You do realise that you'll have to kill us all now, don't you.

[Troll]

You should add the warning though that if anyone goes down this route they may find that they suddenly have to contibute large amounts of money to the ruling political party

FTFY

[OwlHoot]

James, I have nothing constructive to add to this thread since I do not indulge in accounting malpractices. However, shall I point out to you that there is a significant difference between "there" and "their" ?

and between company's and companies

Not off-topic, because I reckon you need more help with your spelling than your accounting.

[Mason Boyne]

There is a method to retain 120% of what you invoice but I've said too much already.

<tut><tut>What's the first rule of tax fraud?<\tut><\tut>

[Gonzo]

There is a method to retain 120% of what you invoice but I've said too much already.

You should add the warning though that if anyone goes down this route they may find that they suddenly have to leave the country and relocate to the other side of the world.

[MarillionFan]

There is a method to retain 120% of what you invoice but I've said too much already.

[Gonzo]

Historically most IR35 enquiries have started with a routine PAYE inspection. If HMRC came to look at your books and records in detail, they would see through your ruse pretty quickly!

See the thread in Accounting / Legal. He / her / it has not registered for PAYE so does that mean that they will be safe from a PAYE inspection?

[suityou01]

Apart from the fact you write in feckwit not English so deserve all the derision that can be heaped on you, what you're suggesting won't work.

1. IR35 hasn't a lot to do with how many clients you have on the go at one time it's much more about working practices and contract wording.
2. Since there would be false invoices generated for cynical tax avoidance purposes then that's called tax evasion and it's criminal.

Quite a few people on CUK hate it when a poster can't be bothered to write properly. See my sig

WTMS

[TykeMerc]

thanx 4 ur repli

Apart from the fact you write in feckwit not English so deserve all the derision that can be heaped on you, what you're suggesting won't work.

1. IR35 hasn't a lot to do with how many clients you have on the go at one time it's much more about working practices and contract wording.
2. Since there would be false invoices generated for cynical tax avoidance purposes then that's called tax evasion and it's criminal.

Quite a few people on CUK hate it when a poster can't be bothered to write properly. See my sig

[suityou01]

I thought the point of these forums was for open discussions and to seek advice from others who may have been in the same situation!!
I was not wanting to promote anything, simply get told - yes that is possible, oh that's a bit risky or don't even try it you will get caught.
Therefore anyone having the same ideas in the future would not have to post as it is already on here.
Not very encouraging for new users on the site to see others shot down so easily
Thanks for your help and apologetics for my poor English and grammar

This is general, wrong forum for serious questions. Try legal and accounting.

Your poor English and grammar makes you sound like a sockie. I'm going to give you a pet name, something like, errrrrrm, Hector. Yes that's a cute sounding name.

[thunderlizard]

So far everybody has questioned this IR35-avoidance scheme based on its secondary failing (i.e. it's blatently illegal).

I would like to question it on its primary failing, i.e. it does not avoid IR35. If you're effectively working a contract of service, you're IR35 caught, no matter how many fake wiring jobs your company has paid for.

[Doggy Styles]

I thought the point of these forums was for open discussions and to seek advice from others who may have been in the same situation!!
I was not wanting to promote anything, simply get told - yes that is possible, oh that's a bit risky or don't even try it you will get caught.
Therefore anyone having the same ideas in the future would not have to post as it is already on here.
Not very encouraging for new users on the site to see others shot down so easily
Thanks for your help and apologetics for my poor English and grammar

OK, look. Cross-invoicing, imaginary contracts and all that stuff was the first thing everyone thought of 11/12 years ago when IR35 was announced. Some of the greatest minds in contracting and accountancy have pored over this.

If there was any legal mileage in a scheme, it would now be commonplace, but unfortunately you will end up in jail for false accounting (or tax evasion) if you tried many of those stunts.

One legal idea that did take off was working for umbrella companies, but I've never done it so I don't know what the latest situation is with them.

There are people on here who can provide good advice about IR35, try the Accounting forum as someone suggested.

You could also try the PCG. For a (literally) princely membership fee with add-ons, they'll insure you for legal costs if you end up fighting an IR35 compliance case brought by HMRC. I believe they also have an FAQ section about accounting.

But above all, you've got to account properly and legally, whether we're talking about IR35 or anything else.

[Clippy]

I thought the point of these forums was for open discussions and to seek advice from others who may have been in the same situation!!
I was not wanting to promote anything, simply get told - yes that is possible, oh that's a bit risky or don't even try it you will get caught.
Therefore anyone having the same ideas in the future would not have to post as it is already on here.
Not very encouraging for new users on the site to see others shot down so easily
Thanks for your help and apologetics for my poor English and grammar

Amongst all the replies there is actually an answer to your question which is to not to pursue this as it is accounting fraud - admittedly, the replies may have come over as a bit strong.

What I would suggest is your speak to your accountant, its what you pay him for after all, but I would hazard a guess he will confirm what has already been said - by all means update this thread with his reply.

Your idea that by asking this question it would help others in the future as they could just search for it is, alas, wishful thinking as the majority of questions have been covered in the past several times.

Also, the reluctance of people to directly answer your question may have something to do with the fact that HMRC have used the contents of these forums in legal action against contractors.

[SueEllen]

This is a great thread.

Particularly as HMRC likes investigating businesses who do things out of the ordinary compared to similar businesses, especially if they are paid in cash.