WHAT IS IR35 - IT IS THE TAX REGIME THAT GOVERNS A PERSON WORKING THROUGH A LIMITED COMPANY BUT WHERE HMRC BELIEVE YOU SHOULD BE EMPLOYED DIRECTLY.

Known as: Intermediaries legislation or off payroll working.

Companies have been known to outsource labour utilising self-employed workforce but ask them to supply their services through a limited company. The issue is 'the end client' would impose so many restrictions, the true relationship mirrors and employer/employee relationship. The benefit to the contractor is they could avoid sick pay, holiday pay and employers national insurance; hence the term Off Payroll Working.

IR35 legislation was targeted at workers within the public sector in 2017; local government, MOD etc.

IR35 legislation for workers within the private sector come into force in April 2020.

If one of your contracts with a client is within the scope of IR35, it doesn't mean that your others will. Each contract with a client would be evaluated on its own merits.

Whether IR35 applies to your engagement, comes down to your contract agreement or engagement letter. HMRC also has an online tool Check Employment Status for Tax, which is updated automatically.

Determining if IR35 applies to you we can do the following:

• I have access to a professional service that will review your contract and provide a professional opinion - at a cost of £250+VAT.
• We can access HMRC check employment status indicator. The online tool, takes you through a series of questions and it supplies is answer at the end. You should print & save your results as evidence.

HMRC IR35 INFORMATION PAGE

HMRC CHECK EMPLOYMENT STATUS INDICATOR TOOL

It is difficult for me to assess your status as the online tool asks question about the working relationship that I am not privy to. Feel free to use the online your tools yourself and share your results. Please call if you have any questions.