Apols up front for gross cross-post but time of the essence...
http://www.scottishelises.com/phpbb/vie ... 25#p422525
Thanks in advance!
APB for IR35 contract review expertise. NLC, clearly!
APB for IR35 contract review expertise. NLC, clearly!
http://www.rathmhor.com | Coaching, training, consultancy
Re: APB for IR35 contract review expertise. NLC, clearly!
I would recommend http://www.pcg.org.uk/cms/index.php They provide a review service through Abbey Tax and they also have contract templates here http://www.pcg.org.uk/cms/index.php?opt ... temid=1317
Re: APB for IR35 contract review expertise. NLC, clearly!
Campbell,
This may or may not be relevant to your circumstances but IR35 is there to try to prevent contractors passing themselves off as service providers within a (typically limited) company and then using that limited company to reduce the overall taxation that is paid on their income. Genuine service providers are different from individuals because they typically provide a service using whatever resources they need - e.g. the service provider might use one of several staff to provide the service and this is typically at the discretion of the service provider, not the customer. They typically have their own offices, their own equipment, etc. The more like this you are, the less you fall into IR35 view of the world.
If you treat 100% of your revenue, less legitimate expenses (e.g. business travel), as income then you ought to have no IR35 concerns, whether or not you decide you need a company to front your services and whether or not you're an employee by another name.
If you plan to try to take advantage of dividend schemes to pay yourself, and perhaps you're planning on transferring some of these dividends to the other half, then you are more likely to have some IR35 concerns and you should definitely get yourself organised before you start. If you plan on simply paying yourself as salary whatever income you receive from your customer(s) then I don't think you need to care; you could also be self employed which might work out more cost effective than a one man limited company.
Cheers,
Robin
This may or may not be relevant to your circumstances but IR35 is there to try to prevent contractors passing themselves off as service providers within a (typically limited) company and then using that limited company to reduce the overall taxation that is paid on their income. Genuine service providers are different from individuals because they typically provide a service using whatever resources they need - e.g. the service provider might use one of several staff to provide the service and this is typically at the discretion of the service provider, not the customer. They typically have their own offices, their own equipment, etc. The more like this you are, the less you fall into IR35 view of the world.
If you treat 100% of your revenue, less legitimate expenses (e.g. business travel), as income then you ought to have no IR35 concerns, whether or not you decide you need a company to front your services and whether or not you're an employee by another name.
If you plan to try to take advantage of dividend schemes to pay yourself, and perhaps you're planning on transferring some of these dividends to the other half, then you are more likely to have some IR35 concerns and you should definitely get yourself organised before you start. If you plan on simply paying yourself as salary whatever income you receive from your customer(s) then I don't think you need to care; you could also be self employed which might work out more cost effective than a one man limited company.
Cheers,
Robin
I is in your loomz nibblin ur wirez
#bemoretut
#bemoretut
Re: APB for IR35 contract review expertise. NLC, clearly!
Jamie - joined PCG but not had a chance to review their resources yet- thanks!
Robin - the true essence of Rathmhor certainly is service provision, to multiple clients on varying commercial bases. With considerable risk on me / the business to maintain a pipeline of work etc. This initial contract opportunity is perhaps more "mainstream" than some that I aim to secure but I've been advised to try to start on the right foot hence the APB here. Perhaps we'll get time for me to explain more fully in due course. Useful summary you have provided. Really appreciated.
Once the bank hol has passed hopefully I can make some progress!
Robin - the true essence of Rathmhor certainly is service provision, to multiple clients on varying commercial bases. With considerable risk on me / the business to maintain a pipeline of work etc. This initial contract opportunity is perhaps more "mainstream" than some that I aim to secure but I've been advised to try to start on the right foot hence the APB here. Perhaps we'll get time for me to explain more fully in due course. Useful summary you have provided. Really appreciated.
Once the bank hol has passed hopefully I can make some progress!
http://www.rathmhor.com | Coaching, training, consultancy
Re: APB for IR35 contract review expertise. NLC, clearly!
Not the legal view but I was contracting when IR35 came about so contracts were subtlety changed to make sure we complied under my limited company.
Key points are
State in contract you will provide the relevant resource(s) to complete the work required (not neccesarily you as the individual)
State what service and outcome is expected rather than the tasks to achieve it as this shows you aren't just doing what is asked to an employee by an employer, in theory it is your remit to work out what needs to be done to achieve it.
If working on employer site you need to be seen to not just be an employee enjoying employee benefits ie be self sufficient, use your own stationary, own phone, your own pc to supplement anything provided, pay full price rather than subsided for any company dos you may attend and avoid becoming involved in company matters eg employee update briefings
Not sure as a single person IT design consultant company who i would find to do my daily job or that the client would be very happy if mysteriously someone else appeared one day to do the job i had but that is what the agreed contract stated therefore the basis of my employment.
If you need anything further happy to dig out one of my old contracts, scan and email it, if it helps for reference.
Key points are
State in contract you will provide the relevant resource(s) to complete the work required (not neccesarily you as the individual)
State what service and outcome is expected rather than the tasks to achieve it as this shows you aren't just doing what is asked to an employee by an employer, in theory it is your remit to work out what needs to be done to achieve it.
If working on employer site you need to be seen to not just be an employee enjoying employee benefits ie be self sufficient, use your own stationary, own phone, your own pc to supplement anything provided, pay full price rather than subsided for any company dos you may attend and avoid becoming involved in company matters eg employee update briefings
Not sure as a single person IT design consultant company who i would find to do my daily job or that the client would be very happy if mysteriously someone else appeared one day to do the job i had but that is what the agreed contract stated therefore the basis of my employment.
If you need anything further happy to dig out one of my old contracts, scan and email it, if it helps for reference.
Re: APB for IR35 contract review expertise. NLC, clearly!
Ian, and others - thanks again.
I have now appointed SJD Accountancy (a PCG affiliate) to provide a fast-turnaround contract review. No-one else could deliver fast enough.
A thorough trawl of PCG documentation tells me most of what I need to know, and having done many a contract review myself in my old life, I would feel fairly confident to apply the main principles myself. *But* this being the first one out of the gates, I have chosen to invest in some professional help and I hope it will set the right foundation.
So well done SE once again. And stay tuned...
I have now appointed SJD Accountancy (a PCG affiliate) to provide a fast-turnaround contract review. No-one else could deliver fast enough.
A thorough trawl of PCG documentation tells me most of what I need to know, and having done many a contract review myself in my old life, I would feel fairly confident to apply the main principles myself. *But* this being the first one out of the gates, I have chosen to invest in some professional help and I hope it will set the right foundation.
So well done SE once again. And stay tuned...
http://www.rathmhor.com | Coaching, training, consultancy