CONTRACTORS AND IR35
Please contact us if you need a free consultation in order to discuss the tax advantages of contracting and the different possible scenarios in more detail.
We provide a full suite of services for contractors including...
- Company registration;
- Year-end accounts;
- Company secretarial service
- Company & personal tax returns;
- PAYE Returns;
- VAT Returns;
- Tax computations and submissions;
- Review of your contracts for IR35 status;
- Preparation of anti IR35 draft contracts;
- Dealing with disputes related IR35
There are many factors which determine whether a contractor is caught by the IR35 legislation.
The Fundamental factors that need to be considered are:
- Mutuality of obligations.
- The right to get a helper or a substitute to do the job;
Additional factors to consider:
- Equipment provision;
- Financial risks;
- Payment basis;
- Opportunity to profit from skilful management;
- Integral part of the organisation;
- Employee benefits;
- Right of dismissal; The parties’ intentions Duration of engagement.
Often these matters are subject of general employment law and non-specific tax legislation. There is a significant amount of Case Law in this area and the Tax authorities are not always right. They don’t have the final word on whether somebody is caught by IR35 or not and we could argue your case for you. There could be considerable costs in relation to employees and employers’ national insurance if you get it wrong as well as penalties and interest. We could review your current arrangements and give you an opinion on whether it will stand up to an attack from the Taxman. We can support you with contract drafts for services and to provide an advice on how you can improve your chances.