In my previous post I asked about insurance and I still have question about IR35.
I am one man Ltd working for private customers
My customer asked me to confirm and sign that business operates PAYE and all payments are subject to Income tax and NIC. I do pay myself small salaries plus dividends . Now I am not sure if I should sign this letter. It sound suspicious and maybe they trying to ask me to sign something to confirm I operate within IR35 rules. Does anyone here has any experience with this subject?
Hi Marian. I’m not sure what IR35 rules are to be honest, but what they’re asking isn’t unreasonable. If they’re using you as a sub-contractor, they want to know your running as a bona fide sole trader/limited company. That way, if your caught fiddling the tax-man, it can’t come back to them, as you’ve signed to say your not fiddling the tax-man. As a limited company, I expect you’ve been asked for your company registration number before? That’s for a similar reason to check with Companies House, so nothing to worry about.
khdgsa:
Hi Marian. I’m not sure what IR35 rules are to be honest, but what they’re asking isn’t unreasonable. If they’re using you as a sub-contractor, they want to know your running as a bona fide sole trader/limited company. That way, if your caught fiddling the tax-man, it can’t come back to them, as you’ve signed to say your not fiddling the tax-man. As a limited company, I expect you’ve been asked for your company registration number before? That’s for a similar reason to check with Companies House, so nothing to worry about.
Hi, let me explain : IR35 (employement law , rules were implemented to make sure that those individuals who suppose to work as normal employees do not hide under one man ltd. The thing is most of my clients and /or agencies is willing to give job only for those who have Ltd. Now they ask to set up Ltd ( i have no trucks) - from my point this is business to business thing but who knows how HMRC would react in case of inspection with proof (confirmed signed letter) that I said all incomes paid to me are subject to PAYE and NIC? Thats very obvious there are expenses which should be deducted from turnover so not full amount can be subject to income tax. And there are dividends too. So if I sign the letter it is like I admit IR35 applies to me but I still dont comply with those rules . And because i signed it all responsibility will be moved on me ?
Your a mug doing it IF:
1.You allow customers (agencies) to dictate you must be limited Co
2. You allow them to dictate you must have insurance cover.
3. You allow them to dictate you must be PAYE/NIC of your Co
4. Your clueless of how Business to Business practices work.
5. You don’t have a customer sign T’s&C’s
Anyone wanna add to the list & make it 10+ or maybe 100+ reasons ?
You are told what to do, when to do it, how to do it, you’re under the direct control of the transport office of your client. You are therefore not legally working as self employed either via sole trader or Ltd Company.
The same could be said if I subconract to another courier. I’m told when to collect when to deliver and am under there. Control for that job so im not allowed to do that as se or it’s then
alix776:
The same could be said if I subconract to another courier. I’m told when to collect when to deliver and am under there. Control for that job so im not allowed to do that as se or it’s then
No you’re not. You’re given a time to arrive for collection and told what you’re taking and what time it has to be there. You’re not told what route you have to take, that you have to do the job the same way as their employees, i.e you’re not expected to fold your curtain straps under the buckles like Stobarts drivers are or that you have to use 5 ratchet straps on a stack of chipboard like we have to, you’re not told how to drive the vehicle as many firms now do. You are also able to send in anyone who you want as the driver as well. You are responsible for any losses or any additional costs that arise. Other than being there at the times specified you are not under any direction or control of the courier.
Think about it. IR35 is supposed to stop all this self employment for what is really working for someone. You’re not a builder, a plumber, a subby. You’re not a real contractor. You’re driving for someone. They should pay you properly, give you an employment contract. Why would you be checking IR35? They know it’s dodgy and up to the line, you know it’s dodgy and up to the line.
Don’t help these people continue to get away with employing people but not employing people. Look elsewhere
James the cat:
Think about it. IR35 is supposed to stop all this self employment for what is really working for someone. You’re not a builder, a plumber, a subby. You’re not a real contractor. You’re driving for someone. They should pay you properly, give you an employment contract. Why would you be checking IR35? They know it’s dodgy and up to the line, you know it’s dodgy and up to the line.Don’t help these people continue to get away with employing people but not employing people. Look elsewhere
^^^^^ sums it up perfectly. About all there is to say on the subject really.
Conor:
alix776:
The same could be said if I subconract to another courier. I’m told when to collect when to deliver and am under there. Control for that job so im not allowed to do that as se or it’s thenNo you’re not. You’re given a time to arrive for collection and told what you’re taking and what time it has to be there. You’re not told what route you have to take, that you have to do the job the same way as their employees, i.e you’re not expected to fold your curtain straps under the buckles like Stobarts drivers are or that you have to use 5 ratchet straps on a stack of chipboard like we have to, you’re not told how to drive the vehicle as many firms now do. You are also able to send in anyone who you want as the driver as well. You are responsible for any losses or any additional costs that arise. Other than being there at the times specified you are not under any direction or control of the courier.
Actually wrong I may be told what route to take as im going to a destination I have to abide by the the companies regs for paperwork I.maybe told how I have to secure the load.
Personally I think they should scrap it doesn’t fit todays economy. It’s only trade unions that have a bee in there bonnet about it. Take Hermes as an example the couriers provide there own vehicle so there se and run ing a business bit they want the same pay as being employed sorry that’s a risk of setting up your own business if you don’t earn minimum wage then that’s your look out
I reckon at some point it may well be but not at the moment when the government is scratting for money and this is a convenient source for them. Remember one member on here who was self employed posted their tax demand from HMRC of over £15000 they got from HMRC because HMRC decided it wasn’t self employment?
Trouble is there are a lot of drivers who don’t have the first clue about being in business setting up as self employed and because they don’t even know basics like having a set of terms of business so you don’t get screwed by your customer, they end up in the crap.
It is possible to do it self employed and do it well, several of us on this forum have, but doing it the way the OP is is wrong on every count.
Another thread that is not giving him the answers he wants to hear.
marian63:
In my previous post I asked about insurance and I still have question about IR35.
I am one man Ltd working for private customers
My customer asked me to confirm and sign that business operates PAYE and all payments are subject to Income tax and NIC. I do pay myself small salaries plus dividends . Now I am not sure if I should sign this letter. It sound suspicious and maybe they trying to ask me to sign something to confirm I operate within IR35 rules. Does anyone here has any experience with this subject?
My question was: why my customer wish to trade only with limited companies such as mine but then give me to sign documents to confirm that all my payments are subject to PAYE and NIC. It does not make sense.
marian63:
Now I am not sure if I should sign this letter. It sound suspicious and maybe they trying to ask me to sign something to confirm I operate within IR35 rules.
There’s yer answer…
Don’t sign it.