IR35 client not toeing the line: What would you do?
I have a client who is, in my opinion an IR35 case but client does not agree with this.
Client invoices his client through the Ltd Co.
The limited company also owns 2 UK properties.
Client will not prepare their books under IR35 regime, but instead puts every claimable item through his book-keeping and expects a full tax deduction for it.
Client has "employed" his wife to manage the 2 rental properties (at £20K a year) and is putting her wage through his Ltd Co under the rental property cost center.
Further, client has just leased a car for him and a car for her, hers going through the rental property cost center and his going through his cost center.
How would you deal with this client, when they are clearly claiming for items that would not be allowable under IR35?
I had thought of getting the client to sign a disclaimer stating that I had advised an IR35 approach but would operate on the clients instructions providing they indemnified me against all outcomes.
- Acquisition by company 18 2
- The complete uselessness of the British banking system 527 11
- R&D on products not sold 49 1
- The process of issuing dividend? 151 6
- Not registered for VAT. Germany wants proof! 144 5
- Client using boyfriend's personal account 1,341 22
- Pattern for CTA 299 7
- Incorrect Accounts. Is it worth taking action against the old accountant? 1,269 8
- equipment rental 192 9
- Capital Allowances 75 1
- R185 (Estates) in final year of administration 76 2
- SATR won't match P14 - what would you do? 191 5
- Travelling costs claimable? 72 1
- Non-resident employer & employee 79 3
- Claiming salary pre incorporation 165 2
- Write off of former director's loan 915 13
- PPR query 139 1
- Fixed asset registers 281 9
- Quirky thread of the year: Community Awards 577 8
- Tech Champion of the Year 191 4
- Desperately seeking Susan, Sam or anyone with any other name 1,352
- Darwinpay Partnership Assessment 435
- Alphabet shares 234
- Agent fees to sell business 229
- ACCA continuity of practice arrangement needed 221
- How to reclaim VAT for a non-EC UK visitor 166
- Charge out rates in London 164
- which entity 147
- confusion about 139
- UK tax regime 'attractive' to investors, says KPMG 139