Re: Sole Trader question : Tue Nov 06, 2012 1:35 pm  

carl_spackler wrote:

It's as much to get the contracting companies as the individuals, really. A lot try to pass employees off as sub-contractors to save paying NI.

Having just spoken to the accountant he thinks I'll be ok, I just have to be careful how the contract is worded, probably best if the contract is to oversee one whole project over the six moths rather than various little jobs as and when they arise. But having another client will be enough to prove I'm self employed he reckons. Also he did say that there has hardly been any cases of people actually been investigated and brought into the IR35 tax bracket, although he did say they may be looking to clamp down on it.

Re: Sole Trader question : Tue Nov 06, 2012 2:08 pm  

Are you going to be working as a sole trader invoicing your clients personally, or are you going to be invoicing through a limited company?

If it's the former, then while you need to think about employment status you don't have to worry about IR35. The IR35 legislation only applies if you are providing your services through your own limited company, e.g. Christopher Ltd.

Re: Sole Trader question : Tue Nov 06, 2012 2:18 pm  

Given that the latest information sheet was published in may this year, I would hazard a guess that a crackdown is coming. Thinking about it there must be tens of thousands of one man band limited companies out there working for single clients through agencies - effectively disguised employees in organisations such as the NHS (many onsultants work that way apparently) so a clampdown would be potentially both very easy and lucrative. It remains to be seen though whether the individuals positions could be easily defended and whether the government would back down in the face of the lobbying that would come their way if a crackdown took place. My advice to anyone considering this type of thing would be to keep the difference they're pocketing sitting in the bank just in case they have to give it back at some point.

Re: Sole Trader question : Tue Nov 06, 2012 3:43 pm  

Andy Gilder wrote:

Are you going to be working as a sole trader invoicing your clients personally, or are you going to be invoicing through a limited company?

If it's the former, then while you need to think about employment status you don't have to worry about IR35. The IR35 legislation only applies if you are providing your services through your own limited company, e.g. Christopher Ltd.

I will be a Sole Trader trading under a business name and billing the client directly, no third party involved.

I'm fairly confident I will be OK.

[Sadfish]

Re: Sole Trader question : Tue Nov 06, 2012 7:28 pm  

christopher wrote:

I will be a Sole Trader trading under a business name and billing the client directly, no third party involved.

I'm fairly confident I will be OK.

You will be fine, why wouldn't you be, the only way you won't be fine is if you don't pay the tax you should pay!