IR35 Rules

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.

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’?

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?

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 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.

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.

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.

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.

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?  

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.