Employment Status and IR35
Understanding Employment Status and IR35
Test your knowledge on IR35 regulations and employment status through our engaging quiz! Dive into real-world scenarios and determine the correct employment classifications based on current laws.
- Assess your understanding of IR35
- Gain insights on employment law
- Enhance your knowledge applicable to freelancers and employers
David has been offered work with the NMT, who are setting up a new production company. They want David to provide his services as an Editor on a new show to air on TV. The work is for a period of 3 months working 2 days per week.
NMT are contracting David through his personal service company. The contract states that he is able to provide a substitute and NMT allowed this on 2 occassions. David is able to work on other matters at the same time and he is actually working the other 3 days each week working on a movie.What do NMT need to do relating to IR35 and what would be the likely status under employment law?
Laura has been providing services as Head of Production to GMC through her personal services company. She is listed on their website as a team member and has been providing services in this way for 7 years, working 5 days per week, Monday to Friday. She has never sent a substitute to cover her absence.
GMC (with a balance sheet of £5.5 million and annual turnover of £10.5 million) force Laura to work in this way. She therefore invoices GMC monthly and pays herself in dividends and a low salary on the basis she is outside of IR35.
Laura thinks that she should now be an employee and on 14 May 2020 she states to GMC that she should be an employee. They don't respond.
Does Laura fall inside IR35 and if she does who is liable for any underpaid tax?
Lenny has been providing services as an Editor to DVC through his personal services company. He is listed on their website as a team member and has been providing services in this way for 2 years, working 5 days per week, Monday to Friday. He has never sent a substitute to cover his absence when he takes a day off.
DVC have 10 employees and turnover of £500,000. They force Lenny to work in this way. He therefore invoices DVC monthly and pays himself in dividends and a low salary on the basis he is outside of IR35.
Lenny thinks that he should be entitled to holiday pay but he doesn't get any pay when he takes time off.
What is Lenny's likely employment law status, and is he entitled to holiday pay?