Hi Bill

Sorry I can't help for your service company question.

I normally just state that no P11d's are due on the P35 if there isn't anything to be declared on one.

Regards

Mark

Hi Bill.

1) No expenses, no P11D.

2) It all comes down to control and whether if the company were not there would the relationship between the parties be deemed as employment.

Deemed employment takes into account such thinks as length of the contract, is there any personal financial risk, is there entitlement to paid holidays, whether the contractor is told how to do the work (not just what needs to be done), does the contractor use the clients equipment, does the contractor use their own equipment and materials.

There are loads of tests for deemed employment and the above examples are by no means exhaustive.

Careful with IR35 as the revenue have sneakily and quietly changed the wording so that IR35 may be applicable to some work done by a company even if not all of it. So it's actually based on relevant engagements rather than all the work that the company does.

Don't forget that even if a company is caught by IR35 5% of gross turnover from the relevant engagements is allowable as a flat rate deduction to cover overheads such as training, books and accountancy fees.

Legitimate expenses allowable are the mileage allowance, accommodation, pension contributions and employers NI contributions. Basically everything that you can get if you were an employee. Everything else is deemed salary.

I can't find the actual definition anywhere (which is strange as it used to be everywhere!) but have a look at this link which is quite useful http://www.contracteye.co.uk/ir35.shtml

Hope that some of the above helps answer your questions Bill.

Talk in a bit,

Shaun.



-- Edited by Shamus on Wednesday 21st of April 2010 01:31:51 PM

Cheers Shaun

That makes IR35 much clearer

Mark, I had a minor hiccup with my SA authorisation code when it came through (said I was already registered!!) but entered it again and am now a fully fledged SA agent

Bill

Just one more service that I offer matey.

Come the glorious day the next government (wishful thinking) have promised to repeal IR35 as it's against everything that they stand for. Basically people trying to do there best to better there own lot rather than dependency upon an intrusive nanny state.

When first devised, the consultation committee that advised number 10 included representatives from the management consultancy firms and Indian software houses... Basically a whose who of people who would benefit from crippling one man band IT businesses.

Nobody who represented IT contractors was allowed to attend the initial meetings.

The rules assume that the contractor would be an employee and the limited company model is just a tax avoidance mechanism but the reality is that the IT contractors provided a flexible project based workforceand traditionally use the limited company model not because of the tax situation but because that was the only legal form that agencies would deal with.

IR35 combined with the lies about there being insufficient people to do the work in the UK served only to create a situation where UK jobs went wholesale to India and people previously paying £25k plus in tax per annum instead became net benefit recipients.

Multiply that up by a few thousand IT contractors, multiply by the last ten years (there was a valiant fight for a few years) and there's about a billion of our current debt problem.

Personally I refuse to admit that there is any difference between my limited company and the post office... Well, except for size.

I do nothing that is not IR35 compliant . For example, I don't pay myself dividends. But I just refuse to sign up to a two tier system of limited companies.

Just thinking about how in thirteen years this bunch of muppets has totally destroyed small UK businesses really makes my blood boil.

Personally I think that it would not be unfounded for the government that we have to be tried for crimes against the state for what they've done to the UK service industry over the past 13 years.

God help us all if they get in for another five year.... But then again one should never underestimate the power of very stupid people in very large large numbers.

Right back off my soap box again before my head explodes.

Talk in a bit,

Shaun.

agreed.

I go for fundamental principles rather than personalities (but I do think that Boris would make a great PM).

If your in business vote conservative

If you want to live on state handouts vote labour

If you want legalised drugs vote green.

Still haven't worked out what the liberals stand.

I refuse to recognise the BNP at all.

Agree with both of you there, benefits need hacking to pieces by someone and the public sector needs one hell of a tidy up. Don't get me started on the NHS.

I'll take your Boris Shaun and raise you Jeremy Clarkson or even better Stephen Fry

Hi Sheila,

UKIP. Sorry, forgot that one in my list.

Brussels would have us all believe that once your in then there's no getting out but it's a little publicised fact that Greenland did actually leave the EU.

Fact is that geographically it's more alligned to the states anyway so maybe it was a mistake them ever being part of the EU but the fact remains that they escaped and if they can do it so can we.

Don't get me wrong, nothing against Europe and the common market was a good thing. But when it comes to another country telling me what I can and cannot do then that's another matter. A lot of people have died to give us the freedoms that we now have and it's not for a government elected by us to give away our freedom without even asking us.

And besides that, it does seem that a disproportionate number of the positions of power in Westminster are held by Scots and as Scotland wants their own freedom how can they get away with trying to give away ours.

That's nothing against Scotland by the way, just about the situation in Westminster.

Right, onto the second part of the rely. Public sector jobs.

Agree again. Why should my council tax keep going up whilst wages are falling in order to maintain public sector pensions!

I think that the public sector is in for a big wake up call if there's a change of government. There is already talk about privatisation of the holiest of holy (PAYE) so that pretty means that no department is beyond being dragged kicking and screaming into commercial reality.

So, have to agree that if your unemployed or work in the public sector then voting for change would be like turkeys voting for Christmas.

Ah, I see the last thirteen years cunning plan, if the only people with work are the ones paying out unemployment benefit then everyone will vote labour! The flaw to that of course is where does the money come from to pay unemployment benefit. Oh I know, we borrow it.

Can you imagine going to the bank and asking for a loan based on no income.

Hope that your having a good day Sheila,

Talk later,

Shaun.