Replies to Queries - 1

Mr Whizzy has his own one-man company which is caught by the IR35 legislation. What he is most upset about is the fact that the legislation pierces the corporate veil and deems the company's income to be paid out giving rise to full annual income tax liability. All other companies have the possibility of paying remuneration or making distributions as they see fit over a period of years.

Mr Whizzy is not therefore so concerned about avoiding National Insurance contributions through the payment of dividends but he is more interested in looking to see whether he can restore the possibility of paying remuneration out as and when he wants to.

Let us suppose that he gives his shares to his son-in-law. His son-in-law is not an associate of his and therefore the essential condition in paragraph 3(3) of Schedule 12 to the Finance Act...