Hello Steve, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
IR35 throws a big spanner in the works these days as an anti avoidance measure forcing many onto PAYE channels. Mark you, this might be the simplest solution anyway. If she invoices as a limited company then the dividend route is available and as you know the first 5K of these are tax free from 16/17. However, they are not allowable against Corporation Tax (CT). Otherwise she must be remunerated from her company through PAYE channels anyway as a director is an employee per se.
I do hope that my reply has been of assistance.
There is no box for me to rate your answer so I have to use this method of reply. But since I have to use this box , if I understand you correctly, it is not possible to trade as a sole trader in these circumstances but it would be possible to trade as a limited company. Is this correct?
It is possible, but with a big employer like the MCC [I am a Mancunian] then there is always a danger of ir35 kicking in.
As a limited company this could be avoided, but there is always a risk of an ir35 ruling by HMRC even then.
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Thank you for your excellent support.