With IR35 being the hottest topic of the day, how are you dealing with the accounting adjustments realting to IR35 receipts into clients' companies books?
If a client raises a sales invoice in the company's name and this is paid under IR35 with PAYE/NICs deducted in the director's personal name, how is this best treated in the company's books? Who has earned the fee, the director (as employee) or the company?
As I understand it, any public sector contracts are not subject to corporation (is that right?) and otherwise HMRC would have a bite of the income tax and CT cherries. But what about the small clients' contracts? If these are subject to corporation tax (on the net pay), is that double taxation?
Many thanks in advance