Self employed contractor

Self employed contractor

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I have a new client who is being pressured by one of her customers to become a Ltd Co, where she is currently self-employed. I assume this is IR35-fear on the part of her client. She is very reluctant to become a LTD after 20+ years of self-employment.

So I have two questions

1. What defence can we present against Goliath?

2. Is the risk worth it?

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By Phil Rees
23rd Oct 2012 15:09

No tax risk but

The tax risk is all with the engager if she is self employed. That is why the engager wants her to become a one person Co. As you say, this puts your client at risk of IR35 status.

The defence depends on how much your client's customer needs her and vice versa. Your client can be dismissed by the engager if they don't want to risk a status enquiry. It depends on who needs whom.

Don't take risks with IR35. If you are forced into the Ltd Co scenario and you are inexperienced in status matters then there are plenty of specialists out there who can help.

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By Halex
24th Oct 2012 08:27

Thanks for this repy Phil. I need to seek more information from client as to her relationship and the relative strength of her position.

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