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Small Business Exemption Client

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    Small Business Exemption Client

    I was wondering if UK contractors have been successful finding clients who fall under the Small Business Exemption.

    As a reminder, there is a windor of opportunity in the forthcoming Off-Payroll Worker rules (5th April 2021), where a client does not have to supply a SDS if they fulfill 2 or 3 criteria for two consecutive tax years. (Yes. Read it again for clarity.)
    • Annual turnover is less than £10.2 million
    • The business has up to 50 employees (and it must be wholly own by itself and it has no parent companies)
    • Balance sheet total of £5.1 millon


    Reference: IR35: the small company exemption - everything off-payroll contractors need to know


    For me, I would love to find a small business exempt client or opportunity, however I am not seeing these at all so far. It looks to me at the time of writing, I might be returning to permanent full time work for the short to middle-term. I also think many startup clients don't know there is about to be a durth of talent on the market appearing in the next couple of months. They also are not thinking of the "leg-up" that they could get and the hiring advantage they would have over their bigger competitors.

    If your news is different on SBE clients, anyhow, please chime in here on this new thread.
    Last edited by rocktronAMP; 27 January 2021, 21:39. Reason: grammar

    #2
    They are such a small percentage of the market who use the lowest numbers of contractors. Put those two factors together and the numbers of contract positions offered bry such companies will be absolutely tiny.

    On top of that they will have a very personal relationship with the contractors they use so will rarely need to advertise.

    So going hunting these down in the hope of getting a gig is pointless...

    And they are only exempt for now. Won't be long till that changes.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      A lot of start ups will be exempt, although working for a start up brings it's own challenges.

      Comment


        #4
        Originally posted by SussexSeagull View Post
        A lot of start ups will be exempt, although working for a start up brings it's own challenges.
        Like when I / you / we get paid?

        I would imagine shorter length contracts with may be 2 week notices. Still I think the key decision maker know that it is risk versus reward. And say a startup does get lucky enough to win £10 milliin from a venture fund, then that would blow the exemption in the next tax year.

        Comment


          #5
          Originally posted by rocktronAMP View Post
          Like when I / you / we get paid?

          I would imagine shorter length contracts with may be 2 week notices. Still I think the key decision maker know that it is risk versus reward. And say a startup does get lucky enough to win £10 milliin from a venture fund, then that would blow the exemption in the next tax year.
          Think about it abit. You can't want to work for a business you clearly don't understand. They've got no money coming in so getting paid is a risk, it's not's when, it's if. 90% will fail so you'll not get your full money from those 90%. They may also offer you shares as we've seen plenty on here. They are worth nothing when it folds so you are working for nothing.

          Just because the start up gets £10 mil it doesn't mean you will and go back to the 90%.. It's not viable to think like that.

          They can be an utter nightmare from IR35 as they are too small for defined roles so will often be all hands to the deck and do what is needed which is a D&C issue. No chance you'll be able to sub either.

          There is no rule of thumb for contracts. Being small you are under the microscope. If you are crap you'll be out on your ear that day. They don't care about the legals of getting rid. If you are good you'll be there forever. When the money dries up or there a break in work you'll be out in a shot. We say notice periods are for permies as they don't really count from us. Even less so for a start up. They aren't gonna pay for dead wood out of a budget with no income.

          They can also be pretty intense and lean in to toxic. It's the owners money you are spending and he's probably sitting next to you.

          You can't be a bum on a seat in a startup. You are probably a large percentage of the business so have to think like a business, not just a code. Which kind of leads on to the fact that if you can't work this out before you start you aren't suited for this type of work.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

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