Recently introduced IR35 reform in the private sector presented a host of challenges to contractors, along with the businesses that place and engage them. Here we have included some of the most common FAQs we get asked about these changes, which were rolled out on 6th April 2021.
The Intermediaries Legislation was introduced in 2000 to tackle 'disguised employment', where an individual uses a limited company to carry out professional services, but works in a manner more like an 'employee'. Your take home pay will be significantly lower if your contracts fall within its scope.
The 'off-payroll' addition to the existing IR35 rules was rolled out across the public sector in April 2017, and the private sector in April 2021.
[Oct 17th 2022] The April 2023 Off-Payroll repeal will no longer happen.
The 'Off Payroll' rules mean that clients (not contractors) are responsible for determining the employment status of contractors. Prior to this, workers themselves were responsible for this determination.
Get started with these IR35 guides
- Start off with our overview of IR35 for a concise guide to the legislation.
- Expert FAQ - Are you 'inside' or 'outside' IR35?
- Try our IR35 tax calculator to find out the financial cost if you are caught.
- Download an IR35 contract template from Qdos
- Why you should consider taking out IR35 insurance.
IR35 – are you in business on your own account?
To ensure that any contracts you undertake are not deemed inside IR35, you need to be able to demonstrate that you are not a disguised employee, but truly working in the manner of a small business owner. In other words, can you show that you are ‘in business on your own account’?
What happens if you’re selected for an IR35 enquiry?
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 in the post-IR35 reform world? How does an IR35 enquiry work now and what should you expect if HMRC contacts you regarding IR35 compliance?
How important is control as an IR35 status factor?
One of the key elements which determine whether IR35 applies to a contract or not is ‘control’. Whether or not a client exerts control over a worker in a way that demonstrates that a client-employee relationship exists.
The key factors which determine your IR35 status
The main factors used to establish whether or not an individual’s contract is caught by IR35 – the most important being Control, Substitution and Mutuality of Obligation. How to ensure that you’re not caught.
Working inside and outside IR35 – what are your options?
With more than six months since the private sector off-payroll (IR35) reforms were implemented, we look at the impact on contractors and how they can work both inside and outside IR35 compliantly via a dual solution.
IR35 ‘blanket ban’ clients to lose out as demand for contractors increases
As the economy recovers and the demand for contractors continues to rise, a legal expert explains why businesses that are unable or unwilling to engage workers on an ‘outside’ IR35 basis will lose out.
Off-payroll (IR35) – what is a Status Determination Statement (SDS)?
Under the off-payroll rules, from April 2021, private sector clients are responsible for determining a contractor’s IR35 status. The decision must be contained within a Status Determination Statement (SDS), alongside the client’s reasoning.
How should a contractor challenge an IR35 determination?
Many contractors are wondering how they can mount an IR35 challenge post-April 2021. Is there any way to successfully appeal an inaccurate or even non compliant IR35 determination?
Are consultancy arrangements a solution to the Off-Payroll / IR35 rules?
The forthcoming (April 2021) off-payroll rules in the private sector have led to much discussion about the use of consultancies as a potential workaround.
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