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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 it applies and a contractor’s employment status.
…Mutuality of obligation, or MOO, is one of the IR35 key tests of employment used by a tax tribunal or… …rvice HMRC Employment Status Manual Mutuality and contracts HMRC continues, saying that there does not need t… …contractor’s limited company should be engaged on contract for services basis , to perform a specific task f…
Category: Articles: IR35 | Wed, 30 Jun 2010

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.
…r is a disguised employee and therefore caught by IR35 can use the resources available in HMRC’s online… …There is also a revealing section on ‘opinions on contracts’, which includes case studies, as well as letter…
Category: Articles: IR35 | Thu, 01 Jul 2010

IR35 and contracting: just why do cases take so long to be resolved?
You can be forced to endure years of stress before your case is resolved with HMRC.
…Contractors facing IR35 investigations can be forced to wait many years u… …igation for several tax years, each with multiple contracts, then a considerable amount of information must b… …stigator will want to know the details about each contract for every tax year being investigated. That means…
Category: Articles: IR35 | Sun, 22 May 2011

Contractors who involve expert IR35 advisors can close down HMRC investigations early
Early intervention by expert advisors can prevent HMRC investigations turning into full blown status reviews.
…Contractors who involve expert IR35 advisors early can prevent HMRC investigations tu… …ited company with multiple income streams from IT contracting, landscape gardening and property letting.” Despi… …spotted the substitution clause in the haulier’s contract and asked the client if it was genuine: “The clie…
Category: Articles: IR35 | Tue, 22 Nov 2011

IR35 issues for project managers working as contractors
Project managers can stay outside as long as they have no line management responsibilities.
…ey may well be identified by HMRC as being inside IR35 , with all the resulting additional tax liabiliti… …roject managers include: If the contractor starts contracting for their former employer, many existing staff wo… …Contractors who choose contracts with project management responsibility by definit… …igation, HMRC will typically require the original contract advertisement and any resulting proposal from the…
Category: Articles: IR35 | Tue, 17 Aug 2010

IR35 Solutions: Improved targeting by HMRC will increase the quality of enforcement
If it is to remain in the medium term, HMRC can apply its expertise to improve targeting and increase the quality and consistency of enforcement.
…IR35 is unlikely to be abolished or replaced in the me… …eeds to drive effective self-compliance among the contracting community. And the evidence clearly suggests HMRC…
Category: Articles: IR35 | Mon, 31 Jan 2011

How to determine if your contract passes IR35
Describes the factors to consider when evaluating your contract for IR35 compliance.
…Introduction Being caught by IR35 could cost you thousands of pounds, and thus the… …thousands of pounds, and thus the process of IR35 contract review before signing a contract is of paramount…
Category: Articles: IR35 | Wed, 05 Jul 2006

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 trouble.
…In IR35 cases, HMRC always obtains the contract between t… …ract that you have with the agency. Two Different Contracts This presents a serious challenge to contractors,… …In IR35 cases, HMRC always obtains the contract between the agency and the client and compares it…
Category: Articles: IR35 | Mon, 10 Mar 2008

Put yourself outside IR35 by bringing in expert help
Contractors can apply simple strategies to add weight to their status by employing expert sub-contractors to work on their contracts.
…s to demonstrate to HMRC that they are outside of IR35 . One of these is to employ a specialist to help… …m with an aspect of their work on a contract. Sub-contracting work to an expert colleague can cost quite a lot… …ir own right. Substitution clauses appear in many contracts, both when the contract is direct with the client… …st to help them with an aspect of their work on a contract. Sub-contracting work to an expert colleague can…
Category: Articles: IR35 | Mon, 01 Sept 2008

IR35 and contracting bonuses – how to manage bonus payments
Contractors must adopt the correct terminology when agreeing to performance-based bonuses for a project.
…ayments can find themselves pitched straight into IR35 , as HMRC is likely to see such bonuses as being… …d with employment. In fact, that simple word on a contract may be sufficient to spark an IR35 enquiry. So co…
Category: Articles: IR35 | Wed, 13 Jan 2021