IR35 Accounted for incorrectly

Posted by marine PM | on Fri, 07/10/2011 - 16:22 3253 17 comments | report

I have recently taken over a couple of clients who work solely for one client, they are both social care workers and work for 1 authority.

They work set hours, use the authorities facilities and are told where to go and what to do, so they are clearly caught within IR35. But heres my problem their previous accountant had not told them about IR35 and was putting through the minimum salary and claiming dividends rather than putting them through on full salary. Now my client is saying that they should be treated as outside of the scope of IR35. How do i go about this now?

My other question is this... am i right in thinking that anyone that is working solely for one client, that is told where to go, what to do, cannot produce a substitute if needed is caught within IR35? It doesn't matter about what industry they are in, or if they have a contract or not?

Sorry if i am sounding thick but IR35 is really confusing me at the moment as i keep hearing different stories.

Comments

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IR35

ccassociates | Fri, 07/10/2011 - 17:08

Similar situation

Gladstone | Fri, 07/10/2011 - 17:16

I wouldn't worry about it

BKD | Fri, 07/10/2011 - 21:55

Agree with BKD

andy.partridge | Sat, 08/10/2011 - 11:34

This is a difficulty in acquiring other peoples clients...

frustratedwithhmrc | Mon, 10/10/2011 - 09:09

in business?

uktaxpal | Mon, 10/10/2011 - 09:49

Thanks

marine | Mon, 10/10/2011 - 13:17

For myself, I'd ask the client about their risk profile

frustratedwithhmrc | Mon, 10/10/2011 - 13:35

Who are we to judge?

cfield | Mon, 10/10/2011 - 14:31

template

marine | Tue, 11/10/2011 - 12:28

A useful link to IR35

drakeltd | Wed, 12/10/2011 - 13:01

IR35 Clients

Roy Price | Wed, 12/10/2011 - 13:07

explanation

uktaxpal | Wed, 12/10/2011 - 14:26

Social care workers?

Steve Holloway | Wed, 12/10/2011 - 16:15

penalties?

uktaxpal | Wed, 12/10/2011 - 16:42

CCH also do independent review

lme | Thu, 13/10/2011 - 10:33

Review of the Contract

Jakeson | Mon, 28/11/2011 - 11:49