So what do you do when you’re faced with taking on a new contract? First thing you have to do is identify how big your end client is.
Hi, my name is Gordon D’Silva. This is another one of the IR35 things that is changing. And the first thing we need to do is look at whether our end client is a small or a medium or large client.
And let’s just look at it if they’re not small, then they’re going to be medium or large. So to be small, they have to be, they’ve got to qualify on the two different things.
The first thing is have they gone less than 50 employees? That’s a really easy one, that this has to be worldwide. A lot of people miss that as to be the whole group. So if you worked for a small Amazon store community, but if you work for a subsidiary of a company, he’s only got 15 people here, or they go 96 people in the Netherlands. Or a hundred people in Australia. Or you know, 700 people in America, but there’ll be 15 people here that would still qualify as large. So they wouldn’t be small under 50 employees.
Next one is a turnover under 10 million globally, right? This is not just UK based globally.
And the third one is they’re going to have net assets on the balance sheet of under 5 million. Give or take, give you these round figures. We can always check and it has to be before the offset of any liabilities as the gross net assets that we’re looking at.
So if they qualify on two of those. If they pass those limits from two of them, that made qualify as the next one. If they are below two of them, then they are small.
And so if they are small, you’ve got to judge whether you are in or out of IR35. And if you get it wrong, you’re the one who’s liable is if you get it wrong, and the Revenue comes to you for tax and national insurance and penalties and interest is going to be you who’s responsible.
And the other hand, if it’s large or medium, they are responsible and they’ve got to give you a decision in writing as to why they consider you to be inside IR35. And why they believe that it’s all going to be in writing and it’s going to be passed down to you. It’s going to go from the end-client down through the agencies involved to you.
Okay? And if that doesn’t happen somewhere where the chain is broken is going to be liable, you may still end up with a problem. But initially the revenue is going to go to these bigger companies and bigger agencies, and if they can’t get it from them, they may come to you still. So you know, risk is still high, but that’s how the thing plays out.
Hopefully that helps. And I look forward to helping you. If you have an IR35 issue or you got a company that needs to deal with it, I’ll speak to you soon. Take care.
Bye.
