IR35

Question 1

When does intermediaries legislation apply aka IR35

Answer 1

Where an individual personally performs a service with another person
Service provided under an arrangements involving a 3rd party
In the absence of the intermediary the individual would be treated as an employee of the client.

Question 2

What conditions must be in place

Answer 2

Worker own >5% shares in intermediary company

If supplied through partnership must be entitled to 60% of the profits (include associates)

Question 3

What are the 3 key factors for determining if someone is employed

Answer 3

Mutuality of obligation - obliged to provide obliged to accepts
Personal service - can send a substitute not just merely in contract
Control - Does employer exercise control when where how.

Question 4

Name some other points (6)

Answer 4

Degree of integration - own desk computer
Provision for own equipment - who supplies tools
Bases of payment
Financial risk (buy assets/ expenditure on training/ rectify unsatisfactory work/ quote fixed price
Opportunity to profit
Number & length of engagement