I've been contracting for over 15 years now, usually with one company at a time. For past year I've reached out and brought in my own work from contacts I know. This work is fixed price work for services, we agree price, they send over a purchase order and I complete work, raise invoice, then get paid - I own all my equipment and software. I am now thinking of doing this full time instead of doing full time contracts. Surely this new way of working falls outside of the IR35 regulations?
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Unsure if IR35 will affect my business
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Unsure if IR35 will affect my business
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Originally posted by whitelined View PostI've been contracting for over 15 years now, usually with one company at a time. For past year I've reached out and brought in my own work from contacts I know. This work is fixed price work for services, we agree price, they send over a purchase order and I complete work, raise invoice, then get paid - I won all my equipment and software. I am now thinking of doing this full time instead of doing full time contracts. Surely thia new way of working falls outside of the IR35 regulations?
It all depends on the view of your end client, how much HMRC have scared that end client and your work practices.merely at clientco for the entertainment -
Sounds well clear outside of IR35. Fixed price work is a big factor, and that you get paid once the work is done.
But the clients will need to give you a Status Determination Statement for each contract or piece of work that you carry out.Comment
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Currently, it almost certainly does. Post April 2020, it depends whether the client agrees, assuming they aren’t a small client. But they should agree - it’s very hard for fixed price work to be inside.Comment
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Thanks for the replies. I'm working with a lot of smaller engineering companies, rather than the big ones I'd work full time. All of them definitely under 50 employees - most have 5-10 people - and probably under the £10 million turnover, but worth checking.Comment
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This question highlights how utterly bonkers the IR35 legislation really is.
Whilst your operation is clearly unaffected [outside] the clients will still have to issue an SDS.
What next, will granny have to raise one when she hires a builder to fix her roof?Comment
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Originally posted by whitelined View PostThanks for the replies. I'm working with a lot of smaller engineering companies, rather than the big ones I'd work full time. All of them definitely under 50 employees - most have 5-10 people - and probably under the £10 million turnover, but worth checking.Comment
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Originally posted by TwoWolves View PostThis question highlights how utterly bonkers the IR35 legislation really is.
Whilst your operation is clearly unaffected [outside] the clients will still have to issue an SDS.
What next, will granny have to raise one when she hires a builder to fix her roof?
I do wonder if a car breakdown insurance company or boiler insurance scheme may need to issue an SDS when they aren't using their own repair teams and decide to use a local independent trader.Comment
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Originally posted by CheeseSlice View PostI do wonder if a car breakdown insurance company or boiler insurance scheme may need to issue an SDS when they aren't using their own repair teams and decide to use a local independent trader.Comment
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