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.
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.
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?
Reports in The Times and FT over the past few days suggest that the Treasury may be considering extending the ‘off payroll’ IR35 rules to the private sector.
The Government implemented new ‘off payroll’ measures to enforce IR35 within the public sector from April 2017 onwards. Rather than being a revenue-generating success for HMRC, the implementation of the new rules has been a disaster. Together with expert opinion, we look at what damage has been done as a result of the reforms.
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.
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.