Contractors & IR35
There is an increasing demand for specialised accountants trained within freelance issues such as IR35 and contract reviews. Speak to our team today.
Lambert Chapman LLP are IR35 Consultants offering advice to Professional Contractors in Essex.
There is an increasing demand for
Is Fred really
self employedor doeshis contractual arrangements really make him an employee of the organisationto whom he provides his services? This is an area of tax law that often comes to light at the time of an HM Revenue & Customs (HMR&C) PAYE review and can prove costly to the taxpaying parties if the wrong arrangements are in place.
With the new Construction Industry Scheme requiring a monthly declaration being signed and submitted to HMR&C more visits are forecast and more fines issued if errors are discovered.
IR35 was introduced in 1999 to prevent those operating through a Limited Company and often via an agency drawing large dividends and a low salary when without the intermediary their status would have required them to be an employee of the end user to whom the services are provided.
Many contractors believe that their contract is “IR35 proof” and continue to draw the dividends. But are they correct in this assumption and may a substantial tax bill be waiting for them around the corner? There are also those contractors who signed up to IR35 but now may be with a different agency under a different agreement and so may have the flexibility to remove themselves from the scheme.
The opportunity of taking specialist advice to determine whether IR35 is applicable to you as a Contractor may well represent money well spent in identifying risks or opportunities in this most difficult of areas.
If you require any assistance in this area, speak to our expert Duncan Forsyth on 01376 326266 or email him.
Meet the experts
Contractors are still not fully aware of the changes to tax legislation that are set to take effect in a year's time, according to a survey from the Recruitment and Employment Confederation (REC). From 6 April 2017, all individuals engaged by public sector bodies were...
For there to be a contract of employment in place, there are three main elements that need to be present. These are: Personal service – the need to carry out work by your own hand. Mutuality of obligation – there must be a mutual obligation between the parties for one...
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