Forming a limited company for a commission based role
You are right to consider your employment status in the situation you describe. If you contract to the LLP as a self employed individual then they will carry the employment status risk. If you trade with them through your own company then you carry the risk through the possiblity of being caught by IR35. Begs the question whether they have suggesed the limited company route because of this.
There are two sides to being caught as a disguised employee - your written contract with the client and the reality of how you are working with them. Over the years the three most important crieria are
1. the ability to provide a substitute to carry out the work on your behalf
2. The degree of control that the client excercises over how you carry out your work and
3. Whether there is any mutuality of obligation beteween the two parties - ie are they duty bound to find you work and are you under an obligation to accept work that they offer.
Hmm..is this conclusive? Thanks for your help Chris - I've looked at these and it's still seems ambigous regarding lunchtime meals (just thinking of how the Quinn case squares with this)
Look again at Quickooks You can a run report of profit by customer/job. As long as you book purchases against a customer then you can report on the same basis
My answers
Many thanks for the comments - most helpful!
Forming a limited company for a commission based role
You are right to consider your employment status in the situation you describe. If you contract to the LLP as a self employed individual then they will carry the employment status risk. If you trade with them through your own company then you carry the risk through the possiblity of being caught by IR35. Begs the question whether they have suggesed the limited company route because of this.
There are two sides to being caught as a disguised employee - your written contract with the client and the reality of how you are working with them. Over the years the three most important crieria are
1. the ability to provide a substitute to carry out the work on your behalf
2. The degree of control that the client excercises over how you carry out your work and
3. Whether there is any mutuality of obligation beteween the two parties - ie are they duty bound to find you work and are you under an obligation to accept work that they offer.
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Reporting of DCA balances
Thanks everyone, very useful feedback. As I suspected, it depends.........
Thanks for the feedback
Many thanks for your help Rebecca
Hmm..is this conclusive?
Thanks for your help Chris - I've looked at these and it's still seems ambigous regarding lunchtime meals (just thinking of how the Quinn case squares with this)
Look again at Quickooks
You can a run report of profit by customer/job. As long as you book purchases against a customer then you can report on the same basis