IR35 can have devastating effects on a limited company, and because of this, compliance is essential for anyone operating on a contract basis.
Qdos have been helping contractors achieve compliance for over a decade, our in house specialists review over 1000 contracts a month, and have successfully defended over 1,300 contractors in IR35 investigations.
We asked Seb Maley, IR35 compliance expert and Director here at QAccounting, for a tip that contractors can bear in mind to help them out should they be subject to an IR35 enquiry.
“It’s really important to keep evidence which shows why you think you are outside IR35. This is what HMRC will ask for at the start of an enquiry and it helps massively if you are able to respond with a strong initial argument.”
Seb here reiterates the importance of gathering a portfolio of evidence. Evidence would of course include things like contract reviews, a necessity for any limited company contractor, plus anything else which suggests you work like a contractor rather than an employee. Examples of this could be even down to things like security badges and telephone extension lists, as all references to professional material that states that you are a business on your account carries weight during an IR35 investigation.
Our advice to any contractor who either finds themselves under HMRC’s radar, or simply has concerns regarding IR35 is simple. Get in touch with a specialist such as Qdos, and ensure that you gather your evidence and get professional support from the outset.
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