IR35 and One man band companies (UK tax)

R0N BURGUNDY

Friend of mine is going to work in London shortly and was offered by his new "employer" whether to be employed by them or for him to set up a limited company and become a one man band and get paid that way.

I told him about IR35 and the 6 rules as I understand it:
eg. If you can employ someone else to do your work, don't have to accept work, paid per job and not hourly etc.... He fails in all 6 rules; well, he said he would take out public liability insurance but that remains to be seen..

Anyway - upon further reading it sounds to me like it isn't enforced very much at all. Anyone any experience in this? Is it naive to suggest that this stands a good chance of getting investigated at some stage with tax, interest and penalties due?

I've probably left out some obvious detail here - hit me up what else you need to know.

Cheers guys

dbran

Hi

This is a UK tax issue and you should seek professional advice on it.

As far as I know it is enforced and there are severe consequences for being on the wrong side of it.

Kind Regards

dbran