Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
Instead of paying a salary as such your company will be paying a lump sum or sums as sales are received. Such payments will be allowable against the company's profits for Corporation Tax (CT) purposes. In the event of a possible liability then this would be the company's and the individual would be protected. You should be careful that these payments do not breach ir35 whose remit is very broad. You can red allabout that here:
You may have to operte under PAYE arrangements when making payments to individuals.
It would be adviseable to have contracts for the companys' confedeartes drawn up by a truted, local solicitor.
I do hope that I have shed some light on the possible pitfalls in your company's operational scenario.
Yes, it does. These rules are designed to limit tax avoidance or even evasion by persons working in the UK. They do not apply to individuals not so working. Fr UK home workers thay may still apply.
Were you contracting out to corproate entities I would concur with your opinion. If UK individuals are involved then I would advise you to seek HMRC guidance as to whether ir35 applies in specific cases. It is designed to protect against deemed employment in the UK and to ensure that people claiming company-related non-taxable benefits are entitled to these benefits and not simply misusing a tax structure to avoid income tax.
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