- Wednesday, 04 September 2013 08:09
- Written by Troy Stevens
Brand new IR35 compliance passport launched for contractors.
Created by leading industry experts, the IR35 Buddy compliance passport is designed to protect contractors who are at risk of IR35. Aimed to be used as a tool to help ensure compliance, IR35 Buddy intends to point professionals in the right direction with their tax status.
“IR35Buddy has been designed to help genuinely self-employed contractors and freelancers ensure that they fully comply with HMRC’s regulations.”
The new initiative is supported by a number of major service providers, providing freelancers, contractors and one-man limited companies with resources and advice that is necessary to self-assess tax status against the Revenue’s Business Entity Test, to ultimately determine whether they are actually self-employed.
Founder Alf Gordon comments on the new project: “In order to restore some clarity to the air of confusion, misunderstanding and lack of knowledge surrounding IR35, we have created a resource that enables contractors to follow the authority’s rules to the letter, establishing their tax status as legitimate one man companies once they have passed the Passport review process.”
IR35 Buddy is an online portal that can be accessed easily, and is designed for UK contractors to take control of their own status, making sure that they comply with HMRC guidelines and regulations. Professionals who log onto the Buddy portal have the opportunity to complete an online evaluation, check their ‘risk’ level and access an array of services created to bolster their compliance.
“An annual IR35 Compliance Passport, for which there is a small fee, will enable HMRC, contractors, agents and service providers to be assured that the correct tax and NI are being paid to HMRC each year.”
The principles of IR35 Buddy are unlike most defensive based approaches to the legislation, their methodology being of the stance of compliance as opposed to avoidance, making their approach legitimate and sincere.
“The irony is that IR35 is much misunderstood, and could actually be the contractor’s best friend. Although never originally intended to apply to freelance professionals, it lays out a clear set of guidelines through which contractors can both protect their status and clearly distinguish themselves from unscrupulous tax avoiders.”
How does it Work?
The portal helps contractors work out their tax status from an IR35 perspective, pinpointing where their company falls short using the IR35 rules and the points system given in the Revenue’s Business Entity Test.
Step One - The first step to compliance is the tests themselves, a twelve point examination of essential business characteristics, demanding that participants score a minimum of 20 out of 98 points in order to be considered legitimately self-employed.
Step Two – The second step that IR35 Buddy provides is an independent contract review that is carried out by an industry expert to verify compliance.
Step Three – The third step of the process is a compliance passport application and assessment that results in a tax passport issued to each individual on acceptance.
IR35 Buddy provides exclusive access to a number of services all designed to demonstrate how contractors can prove that they are operating as a legitimate business under IR35 criteria. The site itself offers access to unmatched and unparalleled resources and services to help them to comply. The suite includes access to a substitution network, designed to satisfy requirements around subcontracting arrangements, contractual compliance, and further access to a working premises providing ultra-low cost workspace leases, all available for free via the online hub.
“From the onset, our vision has been to work with HMRC, leading IR35 Legal experts, UK service providers and the freelance community to clear up a lot of the confusion surrounding the regulations, eliminating dubious contrived avoidance schemes and ensuring that bona fide contractors are not driven out of the industry by fear or misinformation and that much needed new specialists can enter the market, thus ensuring the retention of the UK’s technical and specialist skills.”
For full access to the many services and facilities provided by IR35 Buddy, log onto their site today and take a look.
Have any thoughts regarding this new IR35 initiative? Feel free to comment in the box provided.Comments