Social Worker limited Co

Social Worker limited Co

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I have been told that a social worker who is currently self employed has to trade through a limited company from now according to changes in this sector by HMRC, they work for several different companies so would this then fall under IR35?

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By LuKosro
29th Sep 2014 20:18

Hi there,

This is so that the agency who pays the social worker avoids the employment intermediaries legislation.

https://www.gov.uk/government/consultations/onshore-employment-intermediaries-false-self-employment

It effectively shifts the risk from the agency to your client (as a limited company he / she will fall under the IR35 rules). You might want to check the IR35 Business Entity Tests. 

http://www.hmrc.gov.uk/ir35/guidance.pdf

If the company is in the medium or high risk, then it needs to build its case to show that it is not a personal services company.

Sorry if it made it even more confusing.

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