How many contractors does it need to be a business rather than a PSC?

[fidot]

A simplistic answer to the original question

21 people each holding less than 5% cannot be caught by IR35

[b r]

Ok, so you're saying that ANY company supplying staff into the PS, where some of these staff are contractors will/may have to take them on on a PAYE basis. Hmm, be good to do a FOI request in a years time to see the compliance on that :-)

As it is, my OH is looking back into the private sector for her next contract, senior PM with FS experience so hopefully she'll be fine.

[malvolio]

21 people each holding less than 5% cannot be caught by IR35

Ramsay aside, meaning the intermediary company will be disregarded, IR35 is on a per contract basis and will look at the individual engagement. You can still be inside IR35 then, meaning your 20 partners will be paying your taxes in proportion to their shareholding. Can't see that happening somehow...

But you miss the point. Any engagement with a PS body that exhibits any degree of control over the worker will be deemed to be inside IR35 anyway. You may not be inside, in fact, but getting the imposed taxes back is your problem.

[northernladuk]

Ok, so you're saying that ANY company supplying staff into the PS, where some of these staff are contractors will/may have to take them on on a PAYE basis. Hmm, be good to do a FOI request in a years time to see the compliance on that :-)

As it is, my OH is looking back into the private sector for her next contract, senior PM with FS experience so hopefully she'll be fine.

She'll be more than fine. There will be tons and tons of roles for her....... Tax wise... Hmmmm

[eek]

Ok, so you're saying that ANY company supplying staff into the PS, where some of these staff are contractors will/may have to take them on on a PAYE basis. Hmm, be good to do a FOI request in a years time to see the compliance on that :-)

As it is, my OH is looking back into the private sector for her next contract, senior PM with FS experience so hopefully she'll be fine.

No what we are saying is that they may need to be paid via the convoluted scheme being created as if they are PAYE depending on the level of risk the company is willing / needs to take to get the skill set they need.

[b r]

There is also the issue that when Professional Services firms do work there is always 'hours/days' allocated to senior Managers and Partners (and the like), some who will be owners - will those elements also need to be PAYE?

[northernladuk]

Depends.

Are you trying to come to a conclusion that you can apply to yourself or are you just asking out of interest now?

[b r]

Curious now, I always like to see a level playing field, but know it rarely occurs :-)

[northernladuk]

Curious now, I always like to see a level playing field, but know it rarely occurs :-)

But you need to fully understand and appreciate the full model and how your question affects that. Just asking the odd question that doesn't relate to anything isn't going to help.

[breaktwister]

1 - outside. Individuals don't own 5 per cent of the company.
2 - outside. Individuals probably don't own 5 per cent.

Can you elaborate or provide links to further info re: individuals owning 5% of the company?