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IR35/Ltd companies

knowledgeispowerknowledgeispower Just JoinedRegistered Posts: 31
Hi there,
I had an earlier post about directors getting minimum wage - and how it is a regular practise and completely legal apparently...
However IR35 seem to have a different 'meaning'. If an HGV driver works through an agency and doesn't own his lorry, how can minimum wage be justified and proved that they should be ltd co, they shouldn't be employed (agency only takes on ltd cos). How is this done with other accountants? I want to obviously get it right but have no experience with ltds.
can i pls have some input/advice/experience on his...would be much appreciated!

thank you :-)

V.

Comments

  • paulstaffordpaulstafford Feels At Home Registered Posts: 126
    Have you assessed whether he falls under the provisions of IR35?

    If yes, then his company should just pay him a regular monthly salary . If the answer is no then there is no reason not to go down the minimum salary / dividends route.


    knowledgeispower
  • burgburg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,441
    As Paul says it simply comes down to whether you think he falls under the provisions of IR35. If yes then you have to follow those rules if no then you don't.
    Regards,

    Burg
    knowledgeispower
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