entertainers

[cruciverbals]

Attention practising accountants

IR 35 is a bloody nightmare. I have told a friend who is an actress that she is probably caught under the IR35
rules as she wants to invoice her own fees to her
company, of which she is a fifty per cent shareholder.
The other actors in the show will all be self employed but will her company have to deduct national insurance
from the one off fee for the show and will her company have to pay employer's national insurance?

Would greatly appreciate comments or alternative suggestions.


Dave

[buildersmate]

Well, if she invoices the fee to her company, then any salary income taken from that is of course subject to PAYE and NIC (employers and employees). I guess your question is can she take all the fee out in dividends? If she did, that would almostly attract the attention of HMRC since that was the very thing that IR35 was established to stop. She could take part of it as salary, but the issue is how much and is this a one-off situation or part of the irregular income of a trading operation.