IR35 and IFA debate
Debate in our office to whether a client is caught by IR35. We initially thought he was okay but recently another IFA in the head office (or business premesis) have had his annual accounts completed with the deemed calculation. The set up is similar to larger organisations such as St James Place. The director can do his own timetable (other than a Monday where the firm have a meeting and are requested to be in the office - potential issue)? All income is paid directly to the head office with the % split afterwards (basically a commission of the initial fee to the customer). Also there is a remittance given at the end of the month detailing the client,fee and split. People can walk in off the street as well but in this situation the % split is different. All documents the client uses do not contain his own Limited Company name or details but the head office - could this be changed? The head office cover all the costs such as professional indemnity insurance. Costs such as laptops, train fare, stationery are not paid by head office. There are employees of the 'head office' company such as receptionist, the concept is the % split of commission takes into account these costs incurred by the head office and not paid directly by our client. There would be nothing to stop our client employing someone else to support them should they require this. I am sure this type of set up is not uncommon across the UK and we would appreciate other accountants thoughts. Happy to provide more information if needed. Appreciate your time and hope this question helps others in the future.
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