Can I avoid IR35 this way

[jamesc77]

I am a one man band Ltd Project Management company and work for one client at there office on a rolling contract, that could last for several years. Therefore I could fall into IR35.
I have two friends who also have there own Ltd company's, one electrical the other financial.
In theory, could I invoice them for imaginary work, they pay my company and when I receive my dividends I will pay them back in cash. They have also released money from there business with out paying taxes?
Therefore to my accountant / HMRC I have carried out work for several company's and would fall outside IR35.

All in theory of course.

[EternalOptimist]

I am a one man band Ltd Project Management company and work for one client at there office on a rolling contract, that could last for several years. Therefore I could fall into IR35.
I have two friends who also have there own Ltd company's, one electrical the other financial.
In theory, could I invoice them for imaginary work, they pay my company and when I receive my dividends I will pay them back in cash. They have also released money from there business with out paying taxes?
Therefore to my accountant / HMRC I have carried out work for several company's and would fall outside IR35.

All in theory of course.

If it means so much to you, to get an extra 7% or whatever, by paying cash and lying, I would suggest that you are asking on the wrong forum

in theory of course

[Doggy Styles]

You'll get done for false accounting.

[Qdos Contractor]

But HMRC will investigate on a contract by contract basis. Whilst having concurrent contracts/income streams is certainly positive, it's not going to automatically mean you'll 'avoid IR35'.

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!

[jamesc77]

If it means so much to you, to get an extra 7% or whatever, by paying cash and lying, I would suggest that you are asking on the wrong forum

in theory of course

It's not about paying cash and saving 7%. I was just looking for ways to support not falling into IR35.

New Question just for you......

Are there any ways to help you not fall into IR35?

Thanks

[jamesc77]

But HMRC will investigate on a contract by contract basis. Whilst having concurrent contracts/income streams is certainly positive, it's not going to automatically mean you'll 'avoid IR35'.

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!

Thanks, that's the type of constructive answer I was looking for

[EternalOptimist]

It's not about paying cash and saving 7%. I was just looking for ways to support not falling into IR35.

New Question just for you......

Are there any ways to help you not fall into IR35?

Thanks

well if you dont mind paying the 7% or whatever
pay it
and absolve yourself of all future worry

[MarillionFan]

If it means so much to you, to get an extra 7% or whatever, by paying cash and lying, I would suggest that you are asking on the wrong forum

in theory of course

Exactly.

Can we move this to Accounting please?

[fullyautomatix]

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" ?

[jamesc77]

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" ?

thanx 4 ur repli