Anyone who is operating via a limited company, regardless of whether they are a newbie in the industry, or a seasoned veteran, should be made well aware of IR35 and the implications that exist should they be put under scrutiny by HMRC for falling inside the legislation.
We have published numerous hints and tips for contractors, to aid their status and support compliance.
Get written confirmation of your working practices.
HMRC will always look at a contractor’s written contract when launching an IR35 investigation, but the actual working practices are equally as important when confirming status.
An IR35 enquiry will largely focus on the actual working relationship with your end client. Having a compliant written contract is a good starting point, but if HMRC find that the true facts don’t match they will effectively say the contract isn’t worth the paper it’s written on.
HMRC will talk to your end client about how things work in reality and that’s always dangerous. One way of pre-empting this and negating their need to do it is to get your client to sign a document which sets out what the true working arrangements are.
Some organisations are hesitant to sign additional documents like this, but if you think they’d be willing its well worth it.
If you require any advice regarding IR35 then please don’t hesitate to contact your Account Manager
More Posts
Can an accountant help your start-up grow?
As any business owner will tell you, launching a company isn’t exactly the easy option. But it’ll take something else, too. The support of a good accountant. If you’re a start-up founder (or still in the planning stages) and wondering if it’s time you got an accountant, look no further. This article will tell you what you need to know.
Why do I need a specialist property accountant?
Finances in property and real estate can be seriously complicated, even to a seasoned accountant. That’s why we recommend you seek the help of a specialist property accountant to keep everything straight. Let’s look at some of the basics involved.
How to choose the right type of accountant for your business
The accountant/client relationship is an important one as this is the person who’ll be by your side as you navigate the choppy waters of business ownership, so you’ll need to choose wisely. Here are eight pointers on how to choose the right type of accountant for your business.