Are You Inside IR35?
Many contractors are aware of the IR35 legislation and some put measures in place to ensure that they are protected should the Revenue ever launch an investigation into their company accounts. There are a lot of contractors however who operate outside of IR35 who may not be sure of their status. If you think that you might be inside IR35 then read on.
IR35 came into play back in the year 2000 and has been a cause for concern for contractors ever since. Rising and falling in prominence over the years IR35 should always be something that those looking to open and operate via a PSC should be aware of, and many put precautions in place to defend themselves of potential negative outcomes.
If you are operating on a contract via a Ltd Company and are not sure whether you should be operating inside or outside IR35, then it is vital that you satisfy your own peace of mind and find an outcome. The best way in which a contractor can assess their IR35 status is by having an IR35 contract assessment taken out on their written contract. The contract between the Ltd Company and the engager (either the agency or end client) is always the first port of call by HMRC in the event of an IR35 investigation. Having a compliant contract in place has historically been an effective way of stopping an IR35 enquiry dead in its tracks, as a compliant contract should clearly outline the control and engagement between the two parties. IR35 is in place to ensure that all professionals operating via PSCs are doing so compliantly and are not benefitting from employment rights whilst also benefitting from the lower tax bracket and other perks enjoyed by Ltd Company professionals.
We work closely with Qdos Contractor who have successfully defended over 1500 PSC contractors over the years and we utilise their IR35 team to ensure that all our clients know their IR35 status. Having a contract assessment can provide invaluable in putting up a successful defence in the event of an IR35 enquiry and is something that all contractors should take into consideration.
If anyone is currently contracting and isn’t sure of their IR35 status, then having an IR35 contract assessment should be properly considered. Although a compliant contract isn’t everything when defending your company’s status against HMRC, it is a great indicator of your company’s position as to whether you are operating inside IR35, or outside IR35.
Further Economic Support
On Sunday 31st October 2020 the Government announced a number of updates to existing economic support measures. The full details of these measures are reported HERE (https://www.gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced ).
Updates to the Job Support Scheme
The Government has published detailed information about the scheme HERE (https://www.gov.uk/government/publications/the-job-support-scheme/the-job-support-scheme )
Accounting for Limited Company Property Investments
It can be a complex decision for clients when it comes to determining how best to utilise existing Contractor Limited Company funds in a Property Investment Company