Is ir35 a problem for SEO's/Web marketer/Consultants?

[UKSBD]

As SEO/Web marketing usualy consists of working on clients sites, doing work on marketing, work on SEO and usually has a monthly retainer, is ir35 a potential problem?

 

[MrPAYE]

As SEO/Web marketing usualy consists of working on clients sites, doing work on marketing, work on SEO and usually has a monthly retainer, is ir35 a potential problem?

IR35, or rather employment status (as IR35 only applies to Ltd companies), is arguably a "potential" problem for any worker being paid on a gross basis irrespective of the type of work being done.

It is too complicated a subject however to take a broad brush approach and single out any one occupation as being a real problem area over any other (although there are exceptions, e.g. labour-only construction workers).

I'm afraid you need to look at each worker's situation in isolation to decide whether there could be real issues or not.

Happy reading....

 

[OldWelshGuy]

If I have read the question right, then are you asking
if I own a Ltd co, but the company works for many different clients, can I still get done within IR35, then I would say the answer is yes, because your only client will be your own ltd co.

 

[MrPAYE]

If I have read the question right, then are you asking
if I own a Ltd co, but the company works for many different clients, can I still get done within IR35, then I would say the answer is yes, because your only client will be your own ltd co.

Not quite. When considering whether IR35 is an issue, you remove the Ltd co, e.g. OldWelshGuy Ltd, from the equation and look at the relationship between OLdWelshGuy and his end client(s) in deciding whether an employer/employee relationship exists.

 

[OldWelshGuy]

ouch brain fart. yes I am not sure what happened then. If the Ltd co had 1 client then IR35 would kick in yes?

 

[MrPAYE]

ouch brain fart. yes I am not sure what happened then. If the Ltd co had 1 client then IR35 would kick in yes?

It would certainly need more attention, yes, than if the Ltd co had 20 clients. Whether IR35 would ultimately apply would depend on the working arrangement with said client.

 

[awebapart.com]

My understanding is that IR35 is assessed on a per client per project/contract basis, so having one client or many clients doesn't make that much of a difference, you could still have many clients and get caught out in certain cases.

The only situation where I think IR35 is not such an issue is with sole traders since they take their income straight into their personal accounts, but I cannot vouch for this since my experience is only with my Ltd company.

 

[UKSBD]

In my situation I have a Ltd. company.

I am being asked more and more to do work for other people (something I seldom do at the moment)

If I did, I would prefer to charge them via my Ltd. company (I work for my company on PAYE)

What is the point of having a Ltd. company if I can't do work for people on this basis?

 

[awebapart.com]

I've never been a fan of IR35, but the good recent news about IR35 is that it is now under review by the Office of Tax Simplification (OTS).

 

[David Griffiths]

Office of Tax Simplification (OTS).

You are presuming that's good news.

Don't forget that they may "simplify" things by moving the goal posts in the direction that you don't like!

(Reminds me of the old two Ronnies reference to the Department of Stealth & Total Obsurity)

 

[taxattack]

You are presuming that's good news.

Don't forget that they may "simplify" things by moving the goal posts in the direction that you don't like!

Agreed, who knows what horrors may lie in store for small company taxation in general.

 

[jholden]

IR35 is complex, more so due to the largely poorly written legislation that has more grey area than anything else.

Having specialised in this area back in Leeds when it first came out and then looking at cases since taken and mostly lost by HMRC I am afraid you will not get an answer from the forum based on the information you have given.

Take a look at the Contractors UK portal, it’s a good starting point, try this link:
http://www.contractoruk.com/ir35/how_will_i_know_if_i_am_caught_by_ir35.html

Jason

 

[elaine@cheapaccounting]

and don't forget IR35 repel is supposed to be on the agenda for the OTS

 

[David Griffiths]

and don't forget IR35 repel is supposed to be on the agenda for the OTS

IR35 repel is on the agenda for all accountants!