IR35 and Subcontracting Work out

[ob1]

I have my own ltd company that I am working through.

The site that I am working at is now looking at getting in an additional contractor.

I am thinking about putting a friends cv forward for the role and if he gets the job to put him through my companies books as a subcontractor to my company. In a way I would be his companies agency.

Can anyone tell me if doing this would this be beneficial from an ir35 position?
I figure that this does demonstrate that my company is a valid business and not just a vehicle for avoiding the payment of national insurance etc.

[Bradley]

Re:IR35

It would only help if the work he is doing is part of your project and you pay him as an employee, otherwise the Revenue will ignore it.

[ob1]

IR35 and Subcontracting

Cheers for the advice - I guess its back to the drawing board then :rolleyes

[ASB]

Re: Re:IR35

Bradley,

Employee?? What's that got to do with it?.

In my position (different to that posted) I undertake work an use sub contractors. Surely this clearly breaks the requirement for personal service?

Simon.

[Bradley]

Re:Re:IR35

ASB - sorry, don't understand your point.

Isn't IR35 all about ignoring the intermediaries?

[ASB]

Re: Re:Re:IR35

Within the second contract if Fred is doing it through his ltd then he will be subject to IR35 on it (potentially). I wouldn't, since I am not providing personal service. The smae is trus if Fred were my employee.

Of course if I engaged Fred in any form on Contract 2 this would make no difference of the IR35 status related to contract 1.

[Bradley]

Re: Re:Re:Re:IR35

Within the second contract if Fred is doing it through his ltd then he will be subject to IR35 on it (potentially). I wouldn't, since I am not providing personal service. The smae is trus if Fred were my employee.

That's right but I would venture to say that a company employing someone to contract will be targeted less by the Revenue.