HOW TO BEAT IR35

[@nothingbut6s]

I personally spoke with David about IR35 and he was extremely helpful and informative. I was relentless with questions and he provided clear and concise information that will undoubtedly help me moving forward. Thank you again David.

[@tinomutasa5371]

What a video man. Wow

[@migry]

That was very clear and helpful. Thank you for posting! 🙂

[@m77ast]

Excellent video. I like the way the Broll is moving animated PowerPoint.

[@DN-sr1wj]

Amazing content. Thanks

[@debaccountants]

Have you subscribed?

[@kani9325]

Very insightful, highly appreciated👍🏾

[@debaccountants]

Your welcome. Thank you for your kind words.

[@ffp28840]

I think the right of substitution relates to the actual right to submit a substitute to complete a piece of work, having the engager the prerogative to refuse the substitute unless they have the same qualifications. Also the use of engagers equipment is some times unavoidable due to privacy or security issues.

[@debaccountants]

The right to send a substitute that is merely a clause in a contract which isn't or never will be accepted by the end user has been proved to be ineffective in the courts. For substitution to rank as an argument indicating self employment it must reflect the reality of the situation. Using the end user's equipment on its own will not deem you to be an employee but adds to the arguments supporting employment. Remember no one factor is likely to be conclusive on its own. You must take everything into consideration not just one.

[@mrblc882]

If you are self employed and substitute is not qualified, it's your risk. If you are employee, such substitute would be employers risk. Of course, if NDA is involved or your client works on sensitive systems which require background check (like military projects), substitute need to sign NDA with client and get security check clearance. Also, contract can forbid subcontracting, but cannot forbid that you get employee working for you (if your country's self employee organization type allow it). Using engagers equipment for testing i deployment is ok, but not for developement. Even more, if there is any licensed SW on that equipment, you are breaking antipiracy law if licence is owned by engagers.

[@DreamFirms]

Very informative content!

[@debaccountants]

Thank you. That is what we hope our videos are for all that watch them.

[@jeremyevans8014]

Hi David. I have a Private Limited Company (where I am the Director and only worker). One of my Clients (a medium sized company) has currently assessed me as being inside off payment rules which means that any engagement going forward will either need to be done via a certified umbrella company or as a PAYE employee of the company itself. Having watched your video, the only point that seems to relate to me is that I have a company laptop. Everything else, points to a self-employed categorization. I don't want to become a PAYE employee of the company. Is the company correct in its assessment of me as being inside off payment rules?

[@debaccountants3376]

Hi Jeremy If you feel that you are genuinely in a self employed position then you should appeal against their determination. If they cannot substantiate their view that you have employee status then they should not apply IR35. That is the legal position, however, I think that they saying something else here - as I have seen happen to a number of our clients - the people you are working for are avoiding making a decision relating to IR35 which they see as a risk to them. Instead they are saying to you - if you want a job with us you will do it our way. That is come on the books as an employee, or go through an umbrella company. They seem to believe that an umbrella company will give them some insulation from these measures but I think that is misguided. Even if umbrella companies work legally at the present, HMRC have got a good track record of cheating and moving the goal post to ensure that they do not work in the future. I personally would hate to use an umbrella company - you have no control over what is happening. Your tax affairs are dealt with someone who cares very little about you as an individual and supplies you with little or no information. Given the choice of being employed or an umbrella I would go for the employment. In these situation I think it is a question of bargaining power. I have a couple of clients who are contesting a similar situation and are fully prepare to walk away and find work elsewhere, as they are confident they can. They will look for an opportunity where IR35 will not be imposed, for example working for a smaller organisation. Others do not have the bargaining power to fight their engager. They need the work, and falling in line is the price they have to pay for retaining it. Not a great position to be in.

[@jeremyevans8014]

@@debaccountants3376 Hi David. Many thanks for your input. In terms of employment status (as HMRC) interprets it, as I am a Director/Sole Worker within my own Ltd Company, do I fall under the category of self-employed or employee?

[@jacksoncrate]

I am a small ltd so i am exempt?

[@debaccountants]

Hi . The size of the company relates to the engager not you as a worker. If you are the engager it would also not apply to you as would only be a small businesses.