Hi Folks
I own a Ltd company together with my business partner (we are 50\50 shareholder\director).
We currently have 1 client based on statement of work type contract for a fixed number of hours. Both of us are currently working on the client site as part of the contract. To date, we have been operating outside IR35 and have had the contract reviewed by qdos etc.
The client is looking to renew but haven't made a status determination. Instead. they want us to sign an amendment to the contract which states "anyone on site should not be contracted through an intermediary and are required to pay PAYE and NI on income". This is a generic clause they intend to put on all their supplier contracts. They still however intend to pay us gross.
I'm not really sure how this works given that I was understanding the new rules state it is the feepayers responsibility to deduct NI\PAYE - which in this case would be our client? We have tried to make this point a few times to them but it hasn't sunk in as they are dealing with multiple companies most of which are much bigger than ours and most hire employees so are covered.
We could technically start paying ourselves PAYE via our LTD company but we are not sure that is technically the right solution to this. Its very annoying for us as there is plenty of real evidence that our working practises are outside IR35 but we also want to comply with the amendment.
Any thoughts on how this should work?
I own a Ltd company together with my business partner (we are 50\50 shareholder\director).
We currently have 1 client based on statement of work type contract for a fixed number of hours. Both of us are currently working on the client site as part of the contract. To date, we have been operating outside IR35 and have had the contract reviewed by qdos etc.
The client is looking to renew but haven't made a status determination. Instead. they want us to sign an amendment to the contract which states "anyone on site should not be contracted through an intermediary and are required to pay PAYE and NI on income". This is a generic clause they intend to put on all their supplier contracts. They still however intend to pay us gross.
I'm not really sure how this works given that I was understanding the new rules state it is the feepayers responsibility to deduct NI\PAYE - which in this case would be our client? We have tried to make this point a few times to them but it hasn't sunk in as they are dealing with multiple companies most of which are much bigger than ours and most hire employees so are covered.
We could technically start paying ourselves PAYE via our LTD company but we are not sure that is technically the right solution to this. Its very annoying for us as there is plenty of real evidence that our working practises are outside IR35 but we also want to comply with the amendment.
Any thoughts on how this should work?
Comment