Worried About Your IR35 Status?
The tax implications of being found ‘inside’ IR35 can be considerable. Having a contract review is an excellent way of demonstrating that you have operated ‘due diligence’ in determining whether you operate outside of IR35 or not.
If you have any concerns about your IR35 Status, we suggest you carry out our free 2 minute IR35 Status Evaluation below, and if the result shows you may be inside IR35, have an in-depth contract review from an IR35 specialist.
Get A Full Contract Review Today
We have partnered with the leading IR35 specialist, Qdos Contractor, who offer comprehensive reviews and insurances for contractors.
A full Contract Review can reduce the risk of penalties being applied if your status is subsequently challenged by HMRC. Contracts are reviewed by experienced IR35 specialists, who have a wealth of experience in dealing with status enquiries.
Should a contract be deemed to be a fail, your contract review will highlight the points that need to be amended, or suggest clauses that could be added to the contract. As part of the service, Qdos Contractor will happily re-assess your contract for you once the amendments /additions have been made to the contract.
THE QDOS IR35 REVIEW INCLUDES:
An overall pass/fail opinion
A concise list of required changes
Liaison with your agency if required
Highlight any insurance required
IR35 Changes in the Public Sector
On 3rd February 2017 HMRC announced changes to the way the current intermediaries legislation ( IR35) is applied to off-payroll working in the public sector.
What has changed?
Up until now a contractor running a Ltd Company would decide whether they fall ‘inside or outside’ of IR35, meaning that the liability also sits with them should HMRC disagree.
As of April 6th the responsibility and liability of IR35 passes from the contractor to the party paying the contractor (usually the agency).
What does this actually mean?
A lot will depend on how the agencies and clients react to the new rules. A concern is that a lot of Agencies will just take the easy/safe option and deem their contractors inside IR35. If this is the case, then the contractor would be expected to pay employment taxes in a similar way to employees.
If your agency deems you to be outside of IR35 you can continue to run your business and remunerate yourself however you see fit.
What do I need to do?
The first step is to ascertain whether you feel you fall inside or outside of IR35. You can do this by opting for a contract review through our partner Qdos. If this shows you to be inside of IR35 then you will need to calculate how much tax you will pay moving forward. Please contact us if you would like a breakdown. If the review shows you are outside of IR35 then the next step is to speak with your agency. We recommend taking the review prior to this conversation so that you can (hopefully) present your case to them – obviously, this is very much dependent on the agency and their stance.
I’m still not sure what to do?
This is not surprising. The legislation is new and it remains to be seen how it is implemented and how agencies react.
Every case is different so there is no “one size fits all” type answer. If you would like further information then please feel free to contact us and we will be happy to help.