Fw: FN-FORUM Advice needed

date posted 1st September 2001 15:33

----- Original Message -----
From: "Ian Stevens" [EMAIL REMOVED]
To: [EMAIL REMOVED]
Sent: Saturday, September 01, 2001 3:23 PM
Subject: Re: FN-FORUM Advice needed


Hi Geoff,

>
> What would be the best next step? How feasible would it be to set up a
> company with each contractor as a director, to bid for this work and then
> contract it out to ourselves using our current limited companies? (thus
> avoiding ir35?) How would I go about getting the ball rolling?
>

My advice would be to see a good accountant. I'm not sure that what you are
suggesting will avoid IR35 - check
http://www.inlandrevenue.gov.uk/ir35/taxbulart.pdf . Quoting from that
document:

"Would the worker have been an employee if engaged directly by the
client?...... They are intended to apply where a worker supplies his or her
services to a client through an intermediary such as a service company or
partnership."

IMO this seems to cover the setup you are suggesting.

However, if the work is fixed price rather than paid for at an hourly rate
you may be ok, but this may make it more difficult to pay yourselves
according to the amount of work done.

If any of you are currently working through agencies you should make sure
that your current contracts allow you to do this. Also, do the contracts
between your client and the agencies allow this? My understanding is that
contracts usually have clauses that prevent you working directly for the
client within a certain period of time.

Regards,

Ian.

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