IR35 Advice

For free, no obligation advice please call our IR35 helpline on 0800 880 7056 or download our Contractor's Guide to IR35

IR35 legislation came into force with the Finance Act of 2000.

Its purpose is to determine if contractors are “disguised employees”. 

In January, a review was launched into the implementation of IR35 with the results expected mid-February. Click here to find out more.

 

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.

 

What determines IR35 status?

There are several factors to consider, including but not limited to:

Right of Substitution – will the client allow a substitute to provide the service?

Supervision & Control – does the client tell you how, when and where to do the work?

Mutuality of Obligation – is the client obliged to offer work to you and are you obliged to accept this?

Financial Risk – do you have to pay for your own training/tools? do you have to remedy any work which you had done under the agreement previously at your own expense?

Length of Engagement – are you working for one client long-term or for multiple clients on short term contracts?

How can ICS help?

ICS Accounting

  • Unlimited IR35 contract reviews
  • FCSA accredited
  • Dedicated personal accountant
  • Fixed monthly fee
  • Insurances included
  • Cloud accounting software

ICS Umbrella

  • No IR35 risk
  • FCSA accredited
  • Same day, faster payments
  • Employee benefits portal
  • Competitive margin per timesheet
  • Insurances included

 

 

ICS Switch

  • No need to close your PSC
  • Flexibility to switch between solutions
  • FCSA accredited 
  • Access to ICS benefits portal
  • Insurances included

IR35 Role-Based Assessment

  • For use by agencies and end clients
  • Free to use
  • Immediate role-based status
  • Accurately advertise roles 
  • Status reports stored in dashboard

 

Our IR35 audit is a vital stage in allowing our contractors to determine their correct employment status if they operate through a personal service company [PSC]. From 6th April 2020, if your end client is a medium or large buiness in the UK it will be their responsbility to determine your IR35 status. We can support you, your agency and your end client with the upcoming changes so please contact us to hear more about our compliant accounting solutions.

 

There’s an exemption for end-clients who are ‘small businesses’ as defined by the Companies Act 2006 which means meeting two or more of the following criteria:

• Annual turnover < £10.2 million               • Balance sheet total < £5.1 million               • < 50 employees

Where the end-client meets two or more of these criteria, responsibility for determining the IR35 status of a contract remains with the PSC and the changes do not apply.

 

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, call our IR35 Helpline on 0800 880 7056 or complete the form below and a member of our team will be in touch.

 

Reasons to Join ICS Accounting

17+ Years Experience
Contractor Insurances Included
Unlimited IR35 Reviews
Only £125+vat Per Month
Dedicated Contractor Accountant

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.

Stay stress free. Think ICS.

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.