IR35

Qdos Consulting

IR35 Contents:

^ TopWhat is IR35?

What is IR35?
Explains what IR35 is and how it affects contractors.

IR35 history & overview
A timeline and oveview of the IR35 legislation since it was introduced in April 2000.

When should contractors start considering IR35?
Advice and guidance for when to start addressing the IR35 issues.

What is a disguised employee?
Limited company contractors will find themselves labelled as ‘disguised employees’ and inside IR35 if they pass the tests of employment.

^ TopFinancial Impact of IR35?

Financial impact of IR35 on contractors
A contractors take home pay is reduced by up to 25% when caught by IR35.

Contractors inside IR35 pay 14% more tax than permanent employees
Limited company contractors inside IR35 being paid via a deemed payment will pay 14% more tax than a permanent employee, but get no rights in return.

The IR35 5% expenses rule
Explains the Inland Revenue 5% expense rule for contractors caught by IR35.

Limited company contractors with contracts inside and outside IR35
Having contracts both inside and outside IR35 need not be complicated for limited company contractors to deal with, says Phil Richards of BFCA.

IR35 penalties: the cost to contractors of being caught inside IR35
Contractors working on contracts inside IR35 must pay extra tax and, if caught inside IR35 without declaring it, face steep IR35 penalties from HMRC.

^ TopEvaluating your status

IR35 Rules: How to determine if your contract passes IR35
Contractors signing a contract without checking whether it passes IR35 are taking a huge risk. Here’s what to look for before signing the contract.

The importance of taking legal advice for IR35 compliance
Explains why it is important to seek legal advice for IR35 compliance.

IR35 contract problems: Top 10 reasons a contractor’s contract will fail IR35
Contractor contracts are vital evidence that can be used by HMRC to place a contract inside IR35. Don’t let your contract fail IR35 and cost you cash.

IR35 contract reviews for IR35 status – a guide for contractors
Contractors should always get their contracts reviewed for IR35 status by an expert, to ensure they have taken ‘reasonable care’ in the eyes of HMRC.

Contractor guidance on HMRC’s six IR35 example scenarios
Limited company contractors can use HMRC’s six IR35 example scenarios to help them decide whether IR35 is likely to apply to their current contract.

If the client requests me personally, am I caught by IR35?
Many contractors who are the leaders in their field find themselves working for clients who will accept no substitutes. But this does not mean that the contractor is within IR35.

Landmark tribunal judgement tells us who is an employee
The UK Employment Appeal Tribunal in London has handed down a critical decision on the definition of a worker--it directly affects contractors who could be considered employees.

Does length or number of contracts affect IR35 status?
Does how long you work at a place, or the fact that you have several different contracts affect your IR35 status?

IR35 myths: 10 factors that don’t really affect your IR35 contracting status
Contractors are right to be concerned about IR35, but are sometimes misinformed. Seb Maley from Qdos exposes the top ten contracting myths about IR35.

Half my contract is onsite and half at home – am I caught by IR35?
Significant variations during a contractor’s contract can lead to different treatment under IR35, explains Bauer and Cottrell’s Kate Cottrell.

Independent contractors – what are they? Employed or self employed?
Independent contractors are workers who are in business on their own account & provide their expert services to clients under a contract for services.

I’ve been outside IR35 and now think I’m caught. What should I do?
Contractors experiencing a sudden change of circumstances mid-way through a contract may find this alters their IR35 status and hits their finances.

IR35 applies to office holders unless there is no personal service
IR35 will apply to any contractor who becomes an office holder unless they can prove that personal service is not required, says Andy Vessey of Qdos.

Contractor guide on when IR35 will apply to overseas contracts
Contractors domiciled in the UK and working on overseas contracts will find that IR35 still applies in most cases, explains Andy Vessey of Qdos.

^ TopIR35 Business Entity Tests

IR35 Business Entity Test for contractors – process and questions
Contractors can help determine their level of IR35 risk by taking HMRC’s business entity tests, answering 12 questions about their business.

Contractor guidance on HMRC’s risk-based approach to IR35 & the business entity tests
Limited company contractors can use HMRC’s business entity tests to gauge their IR35 risk, which could lead to 3 years of IR35-free contracting.

^ TopAvoiding IR35

Prove your contract is outside IR35 by collecting key evidence
Contractors generate evidence about IR35 every day and by filing it they could halt an HMRC review at the outset, says Qdos Consulting’s Andy Vessey.

How contractors should prove being outside IR35
Contractors should arrange to obtain and to keep certain documents to prove, as best as one can, that they are outside IR35.

IR35 - Top 10 traps to catch the unwary contractor
HMRC is always on the lookout for contractors who put themselves inside IR35 by making easily avoidable mistakes. Here are the top ten traps to avoid.

Can contractors using umbrella companies be caught by IR35?
Does working for an umbrella company enable you to avoid IR35?

International contracting and IR35
Where you pay taxes determines whether or not you have to worry about IR35 if you are contracting abroad. If you pay in the UK, then you have to worry.

Protect your contracting status by building an IR35 compliance file
Contractors who create and maintain IR35 compliance files can rest assured they will be able to prove their IR35 status when HMRC comes to call.

Contractor strategies for long term IR35 defence
Contractors can be taking action now to help build future IR35 defences as Duncan Strike of Quay Accounting explains.

IR35 avoidance: Staying outside IR35 if you go contracting for your former employer
When contracting for a former employer, contractors must prove their new relationship is different to avoid IR35, says IR35 specialist Kate Cottrell.

Contractors must demonstrate business risk as part of keeping contracts outside IR35
Demonstrating business risk can show a contractor as ‘being in business’, thereby helping the case for being outside IR35, says Andy Vessey of Qdos.

IR35 and contracting bonuses – how to manage bonus payments to avoid IR35
To avoid IR35, contractors must adopt the correct terminology when agreeing to performance-based bonuses for a project, explains Andy Vessey of Qdos.

IR35 issues for project managers working as contractors
Project managers can stay outside IR35 as long as they have no line management responsibilities, explains Bauer & Cottrell’s Kate Cottrell.

Keeping control keeps IR35 away from contractors
To stay outside IR35, contractors should ensure they are not under the supervision, direction and control of their clients, notes Qdos’ Andy Vessey.

^ TopMitigating IR35 Taxes

Reducing the IR35 pain with a contractor pension
Reduce the pain of IR35 by diverting your IR35 taxes into a pension and achieve up to 48% tax relief.

Umbrella companies and IR35
Explains the umbrella options with respect to IR35, and whether IR35 can be avoided using an umbrella scheme.

Dealing with multiple contracts being inside and outside IR35
Accounting requirements when you have contracts both inside and outside IR35.

^ TopLegal Points

Contractor guide to Mutuality of obligation (MOO) and IR35
Mutuality of obligation is one of the key factors used by a court or tribunal to determine whether IR35 applies and a contractor’s employment status.

Contractors caught by IR35 who believe the agent was at fault have few grounds to sue
Contractors may blame their agent for landing them with a contract inside IR35, but Roger Sinclair from Egos says they have few legal options.

Contractor guide to IR35 case law
Case law is fundamental to the workings of the UK legal system and is often used to determine whether a contractor is inside or outside of IR35.

^ TopHMRC Advice

Contractor guide to HMRC’s IR35 contract review service
Contractors can ask HMRC to review their contract, but this could increase the risk of an IR35 enquiry, particularly if the contract is borderline.

Contractors can use HMRC's employment status resources to help with IR35 status
HMRC’s online manuals for tax inspectors’ use provide contractors with insights into how not to be seen as an employee and how to stay outside IR35.

HMRC IR35 information and advice - a guide for contractors
Contractors can access IR35 information, guidance & advice online and by phone from HMRC, but it comes with a health warning as there are grey areas.

^ TopHMRC Investigations

What triggers an HMRC IR35 investigation?
Contractors will find that a range of factors could trigger an IR35 review, and the days of a random inspection are long gone, says Qdos’ Andy Vessey.

How to avoid an IR35 investigation
Contractors can adopt a range of strategies to reduce the risk of an HMRC IR35 investigation, explains Andy Vessey of Qdos Consulting.

IR35 reviews by HMRC: how they work
Contractors undergoing an IR35 review by HMRC may be facing a long, stressful investigation process, as Andy Vessey from Qdos Consulting explains.

IR35 compliance letters – contractor guidance on how to respond
Contractors receiving a new-style IR35 compliance letter from HMRC should only respond after seeking expert help, says Andy Vessey of Qdos Consulting.

Contractor HMRC inspections: do you have your IR35 life raft ready?
All contractors are HMRC investigation targets but will have nothing to fear with an ‘IR35 life raft’, as Carl Whittaker of Qdos Consulting explains.

Contractors who involve expert IR35 advisors can close down HMRC investigations early
Early intervention by expert IR35 advisors can prevent HMRC investigations turning into full blown IR35 status reviews, says Qdos’ Andy Vessey.

Contractor appeals against HMRC IR35 rulings
Contractors who have been found by HMRC to fall foul of IR35 and been presented with a large bill for back taxes can appeal to the tax tribunal.

Taxman’s tactics – what contractors should look out for when an IR35 investigation looms
Contractors should avoid trying to deal with a tax inspection without the benefit of specialist help, says former tax inspector Carl Whittaker from Qdos Consulting, who explains what can go wrong.

IR35 and contracting: just why do IR35 cases take so long to be resolved?
Contractors can be forced to endure years of stress before their IR35 cases are resolved with HMRC. Andy Vessey from Qdos Consulting explores why.

Contractor guide to using the Taxpayers’ Charter during tax and IR35 investigations
Contractors can use the Taxpayers’ Charter to help during IR35 investigations if they believe HMRC has behaved badly, says Qdos’ Andy Vessey.

IR35 taxes uncollectable if contractors’ company has no money
Contractors falling foul of IR35 and whose company has no cash to pay any tax due to HMRC are safe from personal liability, says Qdos’ Andy Vessey.

^ TopIR35 Experiences

IR35 case study 2 - a contractors IR35 story
A contractor explains his frustrations at trying to negotiate an IR35 Free contract with an agency.

IR35 case study 1 - a contractors IR35 story
A contractor explains how he used a legal expert to get his contract passing IR35.

^ TopIR35 Test

IR35 Test for contractors - FREE
Free online status test. Evaluate your IR35 status now!

^ TopSpecial reports

IR35 Special Report - 10 years of IR35
ContractorCalculators special IR35 report, on the 10th anniversary of IR35. 10 years that shook and shaped the world of UK contractors

IR35 After 15 Years
History, analysis, and ultimate contractor guide to avoiding IR35.

^ TopWhere to get IR35 help

The following organisations have specialist knowledge of IR35:

Egos

Contact: Roger Sinclair
Email: rsl@egos.co.uk
Phone: 0845-603-7215
Website: www.egos.co.uk

Qdos Consulting

Contact: Seb Maley
Email: smaley@qdosconsulting.com
Phone: 01455 852030
Website: www.qdosconsulting.com


  
  

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