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 finds 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 it’s well worth it.
If you require any advice regarding IR35, then please don’t hesitate to contact your Account Manager
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