IR35 help!

[ImsorryWilson]

Hello,
I was self-employed (indisputably) till 2018. From 2016 I started doing consultancy work for a solicitors firm. I carried on servicing my own client base as well. it’s going really well with the solicitors firm. I really like the team there.
I began to earn more money again from 2018 because my children were older so I set up a limited company.
I’m now at the point where the reality is that I spend 90% of my working week working for the firm. What’s more because of my specialism Brexit has forced me to transfer most of the work I’ve still been doing for my pre-existing clients into the firm.
I have in effect grown and developed a team around my specialism. One of the employees is going to qualify as a solicitor next month and she has chosen me to be her official mentor. I’m described as being a partner in the firm – it’s a way of showing clients my perceived level of seniority and experience
I’ve always preferred the self-employment route But I’ve learnt that work is all about the people you’re working with and so I’d be prepared to change if necessary.
Am I walking into a tax minefield here? If so what sort of minefield is it? Does the firm have options that would protect us both without making my role much more expensive? Do I?

I don’t want to leave

If you're working for a law firm and being held out as a partner I can't see how you could be anything other than an employee. You're being held out to clients as being part of the firm.

Who covers your indemnity insurance? Do you have a practising certificate? Who pays for that?

Presumably you have an accountant? A good one should have been advising you on IR35 for the last couple of years, my partner works on long term contracts in the IT industry and has been given advice around it for at least that long.

My company was a national test case for IR35 on a government contract (yippee). It took 2 years to conclude and cost the business a couple thousand- will have cost the government department contracting us and HMRC a lot more.

I decided to put 3 other contracts into the mix as well

All 4 came out as outside IR35.

The simple answer is that it is very complicated and you can't take a blanket view or cherry pick the IR35 guidance. For example all IT equipment was provided for my company- linked to national security, we attended monthly meetings, we had id badges (cross hatched with contractor and needed as often when we went in the office was highly staffed). We couldn't substitute (specialist work) but could ask another contractor to do the work.

They focused a lot on the little things- I was eligible for a visitors parking space (gold dust), we didn't attend parties or contribute to gifts, we couldn't sign people into the building, needed £5million of indemnity etc

You don't really save tax any more working through a PSC (what you save goes on ltd company costs) but you do pay much less NI.

There is a tool
www.gov.uk/guidance/check-employment-status-for-tax

You need to ask what their plan is for ir35. We’re pushing to umbrella or fixed term contracts. Also, their payroll provider might not be able to tax at source if you fall inside of ir35 so you need to ask.
To note, if you’re revenue is under 10m the change of rules don’t apply to the company.
I wouldn’t bother going to the hmrc tool, they generally fall inside or “undecided” in my experience.
How long have you been there? Though you can be classed as an employee for tax purposes, it doesn’t mean you’re classed as a employee based on employment law. It’s something to consider if you’re classed as inside ir35- you’ll pay the taxes but won’t have the legal rights.

Thanks.
I’ll have a chat with them
Yes, it will annoying if I have to pay the tax but don’t get the benefits!

Will definitely avoid umbrella cos -I’d rather stick my salary in my pension.

I won’t let the tax tail wag the job dog.

Put in your circumstances to the Gov.uk above and see what outcome you get. It doesn't go anywhere, so you can put in different scenarios, save them and compare. It might be that you can negotiate what you're doing differently, so as to fit in with the rules.