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Sam
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Category: Tax
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I receive a small salary of £7,280 a year on a weekly basis

Customer Question

I receive a small salary of £7,280 a year on a weekly basis for my services as a scaffold contractor to the construction industry and £23,920 in dividends paid equally between myself and my wife which is again paid on a weekly basis. Our shares are a separate class of share which represents less than 1% of the total share capital in a company that has other shareholders of a similar nature, who also work for a small weekly wage and a larger weekly dividend payment.
I want to know that if the Revenue were to be successful in classing me to fall within the IR35 rules would any tax charges and penalties be levied against the Limited company or against myself directly in my personal capacity.
Submitted: 3 years ago.
Category: Tax
Expert:  Sam replied 3 years ago.
Hi

Thanks for your question

The charges would be levied against you, if you were found to be in breach of the IR35 legislation, what concerns that you might be in breach of this?


Thanks

Sam
Customer: replied 3 years ago.

When you say that any breach would result in a levy "against you" are you saying it would be levied in a personal capacity or would it be levied against the Limited company for the income tax and national insurance.

Expert:  Sam replied 3 years ago.
Hi

Thanks for your response

Yes you personally, as the IR35 would render the limited company, null and void, so they cannot pursue any amounts owed against a incorrectly set up limited company.

However, this is assumimg you are paid by your customers (who I assume are not contractors) without deduction of tax.

Thanks

Sam
Customer: replied 3 years ago.

Is this even if their are several seperate shareholders within the limited company

Expert:  Sam replied 3 years ago.
Hi

But you just asked about your tax position, not everyone elses, so in answer to that,they would be responsible for their own.

Thanks

Sam
Expert:  Sam replied 3 years ago.
I hope this covered your question.

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