Contractors and IR35
A highly complex area of tax law.
IR35
There are many factors to consider in deciding if a contractor is caught by the notorious IR35 legislation.
Fundamental factors to consider:
- Control
- The right to get a substitute or helper to do the job
- Mutuality of obligations
Other factors to consider:
- Provision of equipment
- Financial Risk
- Basis of Payment
- Opportunity to profit from sound management
- Part and parcel of the organization
- Right of dismissal
- Employee benefits
- The intention of the parties
- Length of engagement
These are often matters of general employment law and not specific tax legislation. There is an enormous amount of Case Law in this area and HM Revenue and Customs is not always right. They do not have the final say on whether somebody is caught by IR35 or not. We can present your case to HM Revenue and Customs for you.
The cost of employees’ and employers’ national insurance if you get it wrong is considerable as well as interest and penalties.
We can review your existing arrangements and give you our opinion on whether it will stand up to attack from the Revenue. We can provide guidance on contracts for services to assist you and advise on how you can minimise the risk of non-compliance.
Get in Touch
Please contact us if you need further advice, have any questions about our services, or would like a free consultation or a fixed quote.