IR35

Contents:

What is IR35?

Financial Impact of IR35?

Evaluating your status

Avoiding IR35

Mitigating IR35 Taxes

Legal Points

HMRC Advice

HMRC Investigations

IR35 Experiences

^ 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.

^ 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.

IR35: 12% more tax than permanent employees
Contractors caught by IR35 argue that they pay far more tax than normal employees. What are the facts?

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.

^ TopEvaluating your status

How to determine if your contract passes IR35
Describes the factors to consider when evaluating your contract for IR35 compliance.

Main reasons making a contract fail IR35
Describes the main reasons why a contract will fail IR35.

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

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 doctor: 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.

Contractor doctor: 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?

^ TopAvoiding IR35

IR35 - a contractor's best defence starts before signing the contract
Contractors who undergo IR35 investigations by HMRC can suffer years of financial and personal stress before their case is resolved. Being prepared will ensure any HMRC attack is swiftly resolved.

Getting an IR35 free contract and passing IR35
Practical advice about how to negotiate an IR35 free contract with your agent.

How contractors should word contracts to keep outside IR35
Contractors should carefully word contracts avoiding terms used by employers and remain outside IR35. This article shows how.

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.

Negotiating your contract for IR35 compliance
If you have been offered a contract which is caught by IR35, or are in a contract that is caught by IR35 you’ll need to consider negotiating changes to get it outside IR35. This article explains how.

Contractors need the IR35 confirmation letter
Getting a confirmation of terms letter from the client could save you endless trouble and expense if you need to prove that you 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.

Advice on buying an IR35 free contract
Is it worth spending money on buying an 'IR35 Free Contract' ?

Contractor doctor: can contractors using umbrella companies be caught by IR35?
Does working for an umbrella company enable you to avoid IR35?

IR35 and the right of substitution: convincing clients to accept the clause
To avoid being caught by IR35 a Right of Substitution clause can be a key factor. But, how do you convince the client or agency to include one?

Contractor doctor: can I change contract terms to be outside IR35 during a contract?
Changing contract terms to be outside IR35 during an existing contract.

Contractor doctor: why can't I use the company canteen?
Contractors can't expect to use the company canteen or to enjoy other employee rights because they risk falling inside IR35. Even small things like this can be important to the Revenue when considering your case.

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.

IR35 danger: when your contract is different from the agency-client contract
HMRC always obtains the agency-client contract and compares it with the contractor contract. They rarely agree, and this spells IR35 trouble.

Contracts alone won’t protect contractors from IR35
Former tax inspector Carl Whittaker from Qdos Consulting talks to ContractorCalculator about his experience of debating notional contracts with HMRC.

Put yourself outside IR35 by bringing in expert help
Contractors can apply simple strategies to add weight to their IR35 status by employing expert sub-contractors to work on their contracts.

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.

^ 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

Contractors should use right of substitution in contracts
It’s wise for contractors to have a Right of Substitution clause in contracts to help remain outside IR35. But make sure it’s phrased properly and don’t rely only on the clause alone.

IR35 and substitution: substituting twice a year could save contractors thousands
Mounting evidence suggests that a contractor’s genuine right of substitution, if exercised, is the key IR35 status factor outweighing all others.

IR35 legal dangers of the standard agency contract
John Antell describes the dangers involved with standard agency contracts and explains what to look out for.

What contractors need to know about IR35 compliant contracts
Contractors need to understand that no contract can in itself remove the threat of IR35 evaluation from the Revenue. But there are some contract clauses that can help you stay outside.

Difference between ‘contract of service’ and ‘contract for services’ in IR35 status
In addition to defining IR35 status, contracts ‘of service’ and ‘for services’ bring rights and responsibilities for contractors and employees.

IR35 case law
Explains the meaning behind ‘IR35 case law’ and provides references for finding out further detailed information.

Mutuality of obligation - IR35
Mutuality of Obligation is a common phrase when dealing with IR35 Status disputes. What does it mean?

IR35 contracts, agencies and issues
Examination of the grey areas between client, agent and contractor.

Keeping control keeps IR35 away from contractors
Contractors who have a limited company need to prove that they control it themselves to avoid traps like IR35 and the managed service rules.

Should contractors inside IR35 have employment rights?
Contractors inside IR35 are taxed like employees, yet they have no employee rights unless they go to court to claim them. An unfair situation that the Government should resolve.

Contractors must not be 'part and parcel' of clients to avoid IR35
One of the tests used to prove employment status under IR35 is being 'part and parcel' of an organisation. Contractors should avoid this at all cost.

Being "in business on your own account" is key for contractors to stay outside IR35
Contractors able to show they are in business on their own account are on their way to staying outside of IR35. As Carl Whittaker from Qdos explains, the objective is to prove you are not 'part and parcel'.

^ TopHMRC Advice

An evaluation of the HMRC IR35 advice and guidance
Provides an independent viewpoint of the IR35 advice on the HMRC web site.

The HMRC IR35 contract review service
What is the HMRC Contract Review service and should you use it?

Should you ask HMRC for an IR35 contract review?
Discuss whether it is sensible to approach HMRC for a contract review.

^ TopHMRC Investigations

What triggers an HMRC IR35 investigation?
IR35 inspections are time consuming and potentially very costly. We discuss reasons why you might be selected for inspection and how to avoid one.

Best practices to avoid an IR35 tax investigation
Avoiding an IR35 Tax investigation means adopting some specific practices in your business. We explain what they are in this article.

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.

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.

IR35 insurance – cover yourself with contractors’ tax investigation cover
Contractors investing in IR35 insurance are buying peace of mind. Or are they? Not all IR35 policies are what they seem, so check the small print.

Contractor doctor: can I get financial protection against an IR35 investigation?
How can a contractor protect themselves financially against an IR35 investigation.

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.