Originally posted by LisaContractorUmbrella
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IR35 - Back to first principles....
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Originally posted by WordIsBond View PostIn principle this isn't bad. But to be clear, even if you think you are in a weak negotiating position, you don't make concessions without expecting concessions in return. The problem I have with IPSE's FLC is it appears to do exactly that -- make concessions without detailing any that HMG should make in return. (We HOPE that HMRC won't target FLCs for IR35, but we aren't insisting.)
If you think your position is weak, you may make larger concessions than you ask for, but you won't make concessions without any in return. That's surrender.
Obviously the plan would be to pitch for as little taxation change as possible! I doubt zero would be achievable though, given HMG's current position.Blog? What blog...?Comment
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Originally posted by breaktwister View PostIR35 was poorly written, difficult to police and easy to circumvent. Everything I have read so far on the new issues can be circumvented by contractors buddying up and forming a ltd with 2 directors proving business services to 2 or more clients. Thus, such a company falls outside the definition of "an employment intermediary" and SDC, IR35 etc doesn't apply.Comment
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Originally posted by sira View PostMy accountant suggested this and he has already created one for his clients. Perfectly legal, as far as I'm aware.Comment
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Originally posted by sira View PostMy accountant suggested this and he has already created one for his clients. Perfectly legal, as far as I'm aware.
This is where dealing with IR35 skids you into EBT-type Tax Avoidance schemes.
Take great care that you aren’t setting yourselves up to be moved into the HMRC Enquiries forum, people..."I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
- Voltaire/Benjamin Franklin/Anne Frank...Comment
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Originally posted by jamesbrown View PostIt's also total nonsense and doesn't circumvent IR35. If the person providing the service retains a material interest, defined as control or ownership of 5% or more of the ordinary shares, then those services are within scope of IR35, other factors being equal (but not necessarily inside IR35). What you're describing is a sham. Obviously, if you were describing a real situation where a given service was being delivered by multiple people simultaneously to the same company or multiple companies simultaneously, those services would probably not be inside IR35, but the point stands that your suggested route to circumvent the legislation is total nonsense.
To me the entire plan seems very similar to the Managed Companies schemes (where 20+ contractors were each given their own class of share and the accountant did all the work) that used to exist before HMRC shut them down many years ago....Last edited by eek; 18 October 2018, 07:22.merely at clientco for the entertainmentComment
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