If you approach running your limited company as that of a business owner, you can said to be “in business on your own account”. That’s to say that your limited company isn’t just a means to an end to get paid, but you view your company as and act in such a way that you truly are in business. Whilst it’s not a conclusive factor to being outside IR35, it’s fair to say that if you are in business on your own account, you’re more likely to be outside IR35.
It’s as straightforward as it sounds. What are the hallmarks of, and activities undertaken by small business owners? They includes things such as:
- Company naming and branding
- Building websites and establishing a social media presence
- Engaging in advertising and marketing
- Seeking new clients, pitching for business, including writing proposals and presentations
- Developing a network of contacts
- Investing in equipment
- Mitigating risks by purchasing insurances
- Retaining profit for future investments
- Engaging in fixed-price work
Also, it’s likely that many small businesses have multiple concurrent clients, and this is could be a strong indicator of being outside IR35, particularly if a reasonable proportion of your income comes from multiple concurrent clients.
Tips for being in business on your own account
Check out our detailed guidance on what you can do to prove you’re in business on your own account.