Client size and responsibilities Client size and responsibilities
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  1. #1

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    Default Client size and responsibilities

    not sure if it's been asked before.....


    Say a client is too small to be responsibvle for the determination. How does the contractor know?
    If a contractor gets an outside IR35 contract offer it's presumably the responsibility of the contractor to decide if the client has made that determination or whether the client is too small.
    Could get awfully messy with the borderline clients.....

    Any thoughts?
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  2. #2

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    Quote Originally Posted by Lance View Post
    not sure if it's been asked before.....


    Say a client is too small to be responsibvle for the determination. How does the contractor know?
    If a contractor gets an outside IR35 contract offer it's presumably the responsibility of the contractor to decide if the client has made that determination or whether the client is too small.
    Could get awfully messy with the borderline clients.....

    Any thoughts?
    You ask the client if they meet the criteria for a small company. They say yes or no. Simple.

    How do you know if they are going to move from a small to medium in the time you are there? You are going to have to proactively manage that and keep in touch with them.

    Bearing in mind the responsibility switches from you to them when they do then it's in their best interests to be on top of this.
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  3. #3

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    Quote Originally Posted by northernladuk View Post
    You ask the client if they meet the criteria for a small company. They say yes or no. Simple.

    How do you know if they are going to move from a small to medium in the time you are there? You are going to have to proactively manage that and keep in touch with them.

    Bearing in mind the responsibility switches from you to them when they do then it's in their best interests to be on top of this.
    Small clients may not have any clue so alerting them that the liability moves to them isn't a great idea.... but yes you need to be aware of it... I wonder how many would check?
    There might well be a higher risk of investigation for contractors with smaller clients, if HMRC find they have time on their hands.
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  4. #4

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    Default Companies Act definition

    For info, you can check the client's accounts on the Companies House website to determine whether they were a 'small company' at the last balance sheet date. The definition for Off-Payroll Rules and company law is the same.

    The accounts may be a year or so out of date but will at least give you an indication. They will includes a specific statement as to whether the company was "small" or not.

  5. #5

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    Quote Originally Posted by realaledrinker View Post
    For info, you can check the client's accounts on the Companies House website to determine whether they were a 'small company' at the last balance sheet date. The definition for Off-Payroll Rules and company law is the same.

    The accounts may be a year or so out of date but will at least give you an indication. They will includes a specific statement as to whether the company was "small" or not.
    I don't think you can see the number of employees on the Companies House website?

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    Quote Originally Posted by zonkkk View Post
    I don't think you can see the number of employees on the Companies House website?
    This is stated in the accounts. Yours too!

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