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IR35 guidance for broker firm

IR35 guidance for broker firm

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Hi there,

This is my first post so apologies if I miss anything out.  I am trying to help a friend out with a query here is there business structure.

There are 4 directors in the company and one of them is 100% shareholder.

The business is an energy broker firm.

The other 3 directors get paid a percentage of money they bring to the firm like a subcontractor but I believe this falls under IR35, am I right?

Is there a different way of doing this? I've seen articles about setting up different classes of shares and possibly looking at an LLP instead of an ltd but i'm unsure at the minute.

Thanks,

Greg

Replies (4)

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By Tim Vane
18th Jan 2016 10:46

This is not something you want to be dabbling in without professional advice. Which party is your friend? This is really something for the company and its accountant to worry about.

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By Inglis6
18th Jan 2016 11:03

My friend is the 100% shareholder, as soon as he said the words IR35 was screaming in my head and wondered if anyone had any advice on it that was all

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By ringi
18th Jan 2016 12:05

Assuming the otehr 3 directors get pay var PAYE

Assuming the other 3 directors  get pay var PAYE, there is no IR35 issue for them.

Then you need to ask if directors that is 100% shareholder is in an "employment like" relationship with the company clients....

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By Inglis6
18th Jan 2016 16:25

Yeah all the directors get a salary, I don't see an issue with the clients as it's a broker firm they aren't under any obligation

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