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
Self Assessment – Q & A
Self-assessments. We have all heard of them, you maybe even know what they are. However, here at QAccounting some of our most frequently asked questions are about self-assessments. So below we have outline some of the most common questions we get asked, and the answers we get so tired of giving… just kidding.
Setting Up a Limited Company – 5 Key Things to Consider
If you are looking at going self-employed, then setting up as a Limited Company (LTD) may be the best option for you.
The Benefits of Having an Online Accountant
Here at QAccounting we are part of one of the UK’s largest contractor service providers. We started operating over a decade ago (around the same time DFS started their first sale) and have been dedicated to serving self-employed professionals ever since. One of the perks of choosing and accountant like QAccounting is that we offer all of our accounting services online.