Only effects medium & Large companies? Only effects medium & Large companies?
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  1. #1

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    Default Only effects medium & Large companies?

    Hi,

    I will obviously be seeking professional advice as well but i thought i'd check here first, but I've been told my agency that IR35 will only affect medium and large companies as defined by HMRC, and that the company I am currently contracting for are defined as a small company, meaning that the reforms will not affect them in any way at all and of course meaning they will not affect me as a result. Can anyone confirm this?

    Thanks

  2. #2

    Some things in Moderation

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    The criteria for a small company are:

    • have fewer than 50 employees
    • have less than £10.2 million turnover
    • have less than £5.1 million on the balance sheet.

    Is they meet any 2 of the criteria they are deemed a small company, and so they fall outside of the legislation as it stands on 29/11/2019.

  3. #3

    bored now

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    Quote Originally Posted by cojak View Post
    The criteria for a small company are:

    • have fewer than 50 employees
    • have less than £10.2 million turnover
    • have less than £5.1 million on the balance sheet.

    Is they meet any 2 of the criteria they are deemed a small company, and so they fall outside of the legislation as it stands on 29/11/2019.
    It does however also depend on the viewpoint of their management though - risk adverse ones may well just adopt what is starting to look like a blanket "no contractor" policy.
    merely at clientco for the entertainment

  4. #4

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    Quote Originally Posted by cojak View Post
    The criteria for a small company are:

    • have fewer than 50 employees
    • have less than £10.2 million turnover
    • have less than £5.1 million on the balance sheet.

    Is they meet any 2 of the criteria they are deemed a small company, and so they fall outside of the legislation as it stands on 29/11/2019.
    Thank you for this! So will need to confirm with them that they meet two of these criteria?

  5. #5

    Some things in Moderation

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    Quote Originally Posted by Sambola View Post
    Thank you for this! So will need to confirm with them that they meet two of these criteria?
    Yes.

  6. #6

    More time posting than coding


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    Quote Originally Posted by Sambola View Post
    Hi,

    I will obviously be seeking professional advice as well but i thought i'd check here first, but I've been told my agency that IR35 will only affect medium and large companies as defined by HMRC, and that the company I am currently contracting for are defined as a small company, meaning that the reforms will not affect them in any way at all and of course meaning they will not affect me as a result. Can anyone confirm this?

    Thanks
    For the avoidance of doubt

    It's only the proposed reforms not the whole of IR35. Yourco will be responsible for determining its status ie no change from current situation

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