service company - IR35??

mc25

I have a client who has formed a Ltd company to try and save on tax. The client works as an agency nurse working for more than 2 agency, before the client formed the Ltd Co. the client used to get paid through umbrella company but now somebody advised them on formating a Ltd company as it will save on tax.. my main worry is since the client is the only employee will they fall under the IR35?? Could you say this is classified as a personal service company and could the client be able to take low salary and top it up with dividends or not?

Any suggestions will be highly appreciated. Thanks

AK002

It's pretty much all in the contract, so you'd need to have a look at that first.

Generally if it says things like, you need to be at the hospital between X and Y and you get X amount of holidays a year, then it's gearing towards a contract of employment.

Monsoon

As AK says, it's all in the details.

http://www.google.com/search?ie=UTF-8&oe=UTF-8&sourceid=navclient&gfns=1&q=how+can+i+tell+if+i+am+caught+by+ir35

mc25

Thanks

Thanks both for your replies I will have a look at it later on in the evening. Cheers