IR35 Advice

Our contractor accountants at ICS have put together a full guide to IR35 which covers all of the FAQ’s we receive from contractors, alongside details of the HMRC Business Entity Tests.

Download our FREE IR35 Guide using the form below or contact us today for FREE IR35 advice and guidance

How Does IR35 Legislation affect you?

IR35 in 5 Quick Points

  • IR35 determines whether or not contractors are ‘disguised employees’ or are, in fact, self employed.
  • IR35 outlines your employment status and how much tax you must pay.
  • If you are ‘inside IR35’ it means that, as a contractor, you are liable for full PAYE and NIC’s.
  • IR35 is determined on an assignment by assignment basis and can change on each contract.
  • Being ‘inside IR35’ doesn’t mean you can’t work through a limited company.

Our IR35 audit is a vital stage in allowing our contractors to determine their correct employment status.

IR35 legislation has not changed since it first came into force in 2000, despite calls from contractor groups such as IPSE who want a simplified legislation to be brought into effect, or for IR35 to be abolished entirely due to the complexity surrounding it.

The government have set up both the Office for Tax Simplification and the IR35 Forum to review the current system and propose an alternative, little progress has been made since the launch of the ‘IR35 Business Entity Test’ via HRMC in May 2012. In October 2014, HMRC have announced these tests will be withdrawn from 6th April, 2015.

You can still take the IR35 Business Entity Test on the HMRC website and it allows contractors to receive a strong indication as to their position regarding IR35. The test scores all contractors on a number of questions which gives an overall score, the details of which you can find in our FREE IR35 guide.

With the investigation of many IR35 cases still continuing, it is important that contractors are fully aware of their IR35 status. To avoid being caught up in an investigation by HMRC, download our FREE IR35 guide or contact us today for some free advice and to discuss your needs.

You can find up to date IR35 news on the ICS blog which can be found here.

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At ICS we pride ourselves on offering a personal service tailored to your own individual needs and our dedicated account team will be available to answer questions and offer advice as and when you need them.

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Top level contracting advice

At ICS we specialise in offering contractor services, such as a wide range of accountancy, administrative and tax advisory services to ensure you and your limited company are operating in a compliant manner.