What is IR35?
IR35 is a piece of anti-avoidance legislation aimed at preventing disguised employment; this is where individuals provide their services through an intermediary (i.e. their own Limited Company) where the income received for performing the services would have been treated as employment income had the contractor been directly contracted by the end client on a personal basis. Thus enjoying the tax benefits associated with this.
As of April 2017, contractors in the public sector will no longer be responsible for deciding their IR35 status and this will instead fall to the Public Sector body. Therefore, by taking it upon yourself to perform an IR35 assessment, this shows that you are taking steps to ensure your compliancy and can be a good resource to provide to your Public Sector client as evidence of your IR35 status.
Determining your IR35 status
IR35 status is determined by a combination of the contractual arrangements and working practices’ involved within a contract role. Therefore your IR35 status can not solely be determined by reviewing a contract only, as HMRC can disagree with this decision if the working practice while on site does not reflect the contract in detail.
IR35 Assessment Review Service
NumberMill offer an IR35 review service which takes into account both the contract and working practices’ of your contract. In the event of an enquiry with HMRC regarding IR35 status, they will generally request a copy of the contract and review the working practice at the client site to confirm they are consistent. It is important to note that IR35 status is on a contract-by-contract basis, therefore if one of your engagements falls inside of the legislation, this does not necessarily mean that all will.
The IR35 review service is a good indicator to HMRC that you as the contractor are taking the reasonable steps to remain compliant and ensure that you are utilising your company in the correct way.
Our dedicated team review a large number of contracts each month to help ensure you remain compliant with each engagement.
IR35 Full Contract Review £125.00 + VAT
- Clause by Clause Commentary Review
- Pass/Fail Opinion Provided
- Working Practices Review
- Advisory Amendments
- 3 Business Day Turnaround
Should you wish for NumberMill to undertake a contract and working practices’ review, please submit your details below and we will be in touch to go through the review