I've a contract with an organization that is deemed as a public sector company. I'm currently set up as a sole trader and able to offset business expenses as part of my self assessment. The company has gone for a risk adverse approach and are moving all contracts (Ltd and sole traders) through an agency. We will be pay rolled through the agency. There is no assessment as to whether you fall in or out of IR35 (though running the tool defines me as self employed). My contract ends in April anyway but will have a new contract for March and April. Would appreciate thoughts on:
1. Does this put me at risk of an IR35 investigation? I always thought sole traders fell out of IR35 but obviously not.
2. If you're pay rolled through an agency - can you still offset business expenses as part of your year end declaration? The agency says you can claim expenses, but its the additional offsetting such as laptop costs etc. that I would be interested in.
3. Is it worth moving to a Ltd company if the organization starts assessing in/out IR35 and returns to direct contracts (they've stated they may do this but for Ltd companies only)