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.
The Intermediaries Legislation was introduced in 2000 to tackle so-called 'disguised employment', where individuals use their own limited companies to carry out professional services, but operate in a manner more akin to a traditional 'employee'. Your take home pay will be significantly lower if your contracts fall within its scope, so take some time to read our guides and find out how to protect yourself against IR35.
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.
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.
There is a huge amount of information available about IR35 and how to protect yourself. But what happens if you are actually selected for an investigation? How does an IR35 enquiry work and what should you expect if HMRC have lined you up as a target?
A confirmation of arrangements letter from your client can be used to back-up your IR35 position with HMRC should it be challenged, as it confirms how you perform your contract duties in reality.
With everyone’s attention firmly set on the April 2017 public sector IR35 rule changes, many within the industry have been asking whether this is merely a test run for a much bigger target – private sector contractors
The Intermediaries Legislation (aka IR35) was first mentioned in a 1999 Inland Revenue press release. Here we look at the key events which have taken place over the past 15 years, and the status of IR35 in 2014.
HMRC’s long-awaited employment status test has gone live, just over a month before the new public sector IR35 rules take effect.
HMRC has published a series of documents outlining the forthcoming ‘off-payroll’ IR35 rules for contractors working for public sector organisations.