Contractors and IR35
The Taxman loses most IR35 disputes!
Please contact us if you would like a free consultation to discuss the tax advantages of contracting in more detail and the different possible scenarios.
We offer all inclusive services for contractors including…
- Company formation
- Annual Accounts
- Company tax returns
- Personal Tax Returns
- Company secretarial service
- VAT Returns
- PAYE Returns
- Tax computations
- Review of contracts for IR35 status
- Provision of anti IR35 draft contracts
- Dealing with IR35 disputes
There are many factors to consider in deciding if a contractor is caught by the notorious IR35 legislation.
Fundamental factors to consider:
- Supervision, Direction and 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 organisation
- Right of dismissal
- Employee benefits
- 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 HMRC are not always right. HMRC do not have the final say on whether somebody is self-employed or not. We can argue your case and take it before the Tax Commissioners for you.
The cost if you get it wrong is enormous. Not only is there the question of employees and employers national insurance, being classified as an employee also gives rise to all sorts of employment rights such as holiday pay, maternity pay, unfair dismissal etc. The decision has to be made by the employer and if you get it wrong it is going to be very hard to recover the back tax, interest, penalties etc from the worker.
We can review your existing arrangements and give you our opinion on whether you are compliant with HMRC. We can help advise on contracts for services to assist you and your business.