How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4190
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I want to employ a contractor but am concerned about IR35,

Resolved Question:

I want to employ a contractor but am concerned about IR35, are you able to offer me some advice?
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
I run my own small limited company and I want to recruit a person to my team that will work 2 days a week for me on a permanent basis at £20 per hour. As an incentive I want to create thresholds for her to drive business and if she reaches these targets she will earn an additional bonus. I also consult for another company and the same girl will work for them in exactly the same way for 1 day a week on the same hourly rate and a similar incentive scheme. How can this work and will this contravene IR35?
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Normally employing a contractor would not bring ir35 into play. However, in the scenario you set out, there is little doubt that HMRC would class this person as an employee and thus she should be paid under PAYE arrangements. If you wish to avoid the palaver of operating a PAYE scheme yourself through one of your companies you could always use a payroll bureau to handle her emoluments.

I do hope that I have shown you a way forward in this matter.

Expert:  bigduckontax replied 1 year ago.

In any event you can always ask the HMRC for guidance on ir35 in their assistance area:

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/ir35-enquiries

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.

Thank you for your support.