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
Chancellor announces that IR35 reform will be scrapped
IR35 reform in both the private and public sectors is to be repealed, the Chancellor announced in the mini Budget, held on Friday 23rd September.
This surprise development made up just one of many welcome tax changes, as Liz Truss’s new-look government promised to start “a new era” and unleash the potential of UK business.
Why is accounting for a start-up business important?
Why do some start-ups succeed while others are doomed to fail?
It’s an often-quoted statistic that around 60% of businesses fail in their first three years – with 20% folding within just twelve months.
But why?
Why freelancers should hire an accountant
In the world of work, freelancing is an increasingly popular option. The promise of flexibility, unlimited earning potential and complete control over the way you work is a hugely attractive prospect for many.