I have recently been made an offer to book-keep for a guy who has eight different companies. It is a lot of work, I am thinking needing 4 days a week.
All are entirely separate companies and I would invoice individually each month. Because the office is in the same place and a couple of times a week it would be easier to go to their offices does this deem me as an employee? Mileage would be reclaimed. One of the businesses is large and would take probably 2 days a week.
My client base is currently 9 (some monthly, some quarterly).
It's a question of how much control the client has over you. Things to consider are:
Will you choose your own hours?
Will you use your own laptop, or theirs?
Can you send someone else in your place?
The more control you have, the less likely you will be deemed an employee. It's a big grey area and each case has to be judged on it's merits.
It might be worth considering having an IR35 contract drawn up legally to protect you both. If HMRC later considered you to be an employee, he could well be liable for tax and NI on what he's paid you.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Yes, I would choose my own hours.
I would use their laptop for the software as it is licensed to them. My SAGE is licensed to 10 companies but they are all in use.
I could send someone in my place but there is only me :)
I could send someone in my place but there is only me :)
2 out of 3 aint bad There may be other factors as well but they are the 3 main ones.
The key thing is you are allowed to send someone else, as opposed to an employee who would have to turn up at a certain time and leave at a certain time (generally speaking)
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
The other question is would you have enough time to service your other clients with 4 days a week with this potential new client.
The only reason I say this is I did until recently have a contract where I was at premises 2 days a week, most weeks I kept to the same days but I could change then if I wanted to. I did find it hindered other clients sometimes especially at the end of the month with payroll etc.
Just something worth bearing in mind when deciding what to do. Also if his companies grow considerably could you then spend 5 days a week with him? Just a thought.
Just a note of caution - how can you realistically choose your own hours if you are doing 4 days a week - unless of course they are open 24/7 on a 7 day a week basis (of course some businesses are!)
Do IR35 contracts actually stand up in law? Have they been tested? Ive never checked case law out (sorry not had time!) Just a thought.
Just another thought - who decided it would be 4 days per week? Have they had someone else doing the role and so can say with certainty or just a guessing game. I totally agree with Amanda - this one could explode and you may struggle, especially depending on the answer to who decided on the timings. Plus - when you take a holiday (yer right what the hell is one of those when you are self employed) but seriously - if you take even a week then how would you get back up to date again.
I would suggest some more questions if you dont have the answer to para 3 and may even take that opportunity to sound them out about sending in a colleague and then consider taking someone else on to assist you with it so that you can still do all the other stuff too. You could have a member of staff working for you on a part time basis - its the best way to expand your business. Give them the more mundane tasks for say 1 or two days per week.
Also - remember the guidelines that no one client should represent more than 15% of your turnover. Self preservation.
Good luck with it - sounds lke an interesting one!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
There may be other factors as well but they are the 3 main ones.
