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Contractors and IR35

The Taxman loses most IR35 disputes!

IR35

There are many factors to consider in deciding if a contractor is caught by the notorious IR35 legislation.

Fundamental factors to consider:

  • Control
  • The right to get a substitute or helper to do the job
  • Mutuality of obligations

Other factors to consider:

  • Provision of equipment
  • Financial Risk
  • Basis of Payment
  • Opportunity to profit from sound management
  • Part and parcel of the organisation
  • Right of dismissal
  • Employee benefits
  • Intention of the parties
  • Length of engagement

These are often matters of general employment law, and not specific tax legislation. There is an enormous amount of Case Law in this area and the Taxman is not always right. They do not have the final say on whether somebody is caught by IR35 or not. We can argue your case for you.

The cost of employees and employers national insurance if you get it wrong are considerable as well as interest and penalties.

We can review your existing arrangements and give you our opinion on whether it will stand up to attack from the Revenue.

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