Are you unsure about your IR35 status as a contractor? Do you need advice about the IR35 process? Prescient Accounting offers expert assistance to steer you through the complexities of IR35 regulations!
When you need help, our team can review your contracting arrangements, assess all risk areas, and ensure you're fully compliant with the latest rules.
Let us know what you need from your accountants, we’re happy to help.
We believe that the role of the accountant is much more than dealing with pure compliance. That’s why we’re offering a free video or telephone call with one of our team of chartered accountants, to give you straightforward and open dialogue about your tax and accounting affairs.
IR35, also known as the off-payroll working rules, is a set of regulations introduced in the UK in 2000. Its purpose is to prevent individuals who are essentially acting as employees from avoiding higher tax contributions through contracting arrangements.
The key aim of IR35 is to ensure that contractors working in a way 'functionally equivalent' to regular employees contribute a comparable amount of Income Tax and National Insurance.
Basically, if your contracting role closely resembles a permanent position with set hours, limited control over your work, and minimal risk to your income, you might be subject to IR35 regulations.
Most employment agencies stipulate whether a job is inside or outside IR35 when advertising a specific role, which is helpful. However, there is still much confusion surrounding this issue, and it's easy to fall foul of the HMRC regulations.
We conduct a full IR35 contract review to establish all of the facts concerning your IR35 status. This comprehensive process assesses both your contract and working practices.
Here's how it works...
Prescient Accounting's team of qualified accountants will analyse the clauses within your written contract, dissecting elements that accurately describe your working relationship with the end client. This in-depth analysis involves:
The review focuses on clauses outlining control over aspects like work schedules, methods, and equipment. Does the contract grant you significant autonomy, or does the client dictate these aspects, potentially indicating a closer resemblance to an employee-employer relationship? Extra complications can arise if a contractor is working for a limited company.
The contract wording will be examined to determine if you have the right to appoint another qualified contractor to fulfil the project requirements. If you cannot designate a substitute and are solely obligated to complete the tasks yourself, it suggests a lesser degree of independence.
The review will assess how the written terms of the contract allocate financial responsibility. Does the written agreement hold you liable for any project-related costs or unforeseen circumstances, or does the client bear that burden? Contractors typically shoulder some financial risk, unlike employees.
The review specifically targets factors outlined in IR35 regulations, such as:
These help us to identify failing clauses, which are specific aspects within a contractor's agreement that, when present, can significantly increase the likelihood of being deemed inside IR35.
A crucial aspect of the review involves carefully comparing the contractual terms with your actual working practices on a day-to-day basis. Inconsistencies between the two can raise concerns for HMRC. For instance, if the contract grants you control over your schedule, but in reality, the client dictates your working hours, this discrepancy could trigger an IR35 investigation.
Having your contract reviewed by our specialist team carries several benefits:
An IR35 contract and working practices review serves as a valuable tool for contractors to safeguard their tax position and minimise the risk of penalties associated with misinterpreting the regulations. You will be provided with a detailed report that can be used as confirmation of your IR35 status in the event of an investigation, and this carries more weight than an actual contract.
Our contract review service allows you to feel confident that your IR35 status is correct, and that you are compliant with the HMRC rules.
Call us today to book your review and let us handle the rest!
An IR35 contract review assesses if your work arrangement falls inside or outside the IR35 tax legislation, determining your tax liabilities.
Determining if a contract is inside or outside IR35 involves assessing factors like control, substitution, and mutuality of obligation.
Misclassifying your IR35 status can lead to significant tax liabilities and penalties from HMRC.
An IR35 contract review can identify strategies to ensure compliance while minimizing your tax burden.
The 2021 IR35 changes shifted the responsibility for determining employment status from contractors to all medium and large-sized private sector clients.
For an IR35 contract review, you'll need your contract, working practices, and any other relevant agreements or documentation.
We believe that the role of the accountant is much more than dealing with pure compliance. That’s why we’re offering a free video or telephone call with one of our team of chartered accountants, to give you straightforward and open dialogue about your tax and accounting affairs.
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