The Government has launched its long-awaited consultation into ‘off-payroll working’ (IR35) in the private sector.

A contractor won a key IR35 case against HMRC this week, which casts further doubt on the taxman’s ability to accurately recognise IR35 status.

Although the Chancellor didn’t mention IR35 in his Spring Statement speech, the Government’s written statement published shortly after suggests that an extension of the public sector off payroll rules to the private sector is still on the cards.

To protect yourself against IR35, you need to be sure that the wording of your contracts (and the way you actually carry out your contract work for the client) show that you are genuinely ‘self employed’. Here we show where you can download a sample contract template.

Ever since the Government first announced its intention to introduce ‘off payroll’ rules within public sector, the inevitable question has been asked – will these changes be extended to the private sector?

Although you should expect all contractor-focused professional accountancy firms to be highly IR35-literate, some still like to advertise themselves as ‘IR35 accountants’, which is a misleading term.

If your contract work is caught by IR35, your tax bill will rise considerably. We look at how contract income is treated if you are caught, and use our online IR35 calculator to work out the affect on contractors earning between £250 and £550 per day.

For a relatively small outlay, a professional contract review service will analyse your contracts to ensure that you comply with IR35 – both in terms of your contract wording, but also the ‘working practices’ you undertake at your client site.