With words like ‘investigation’, ‘enquiry’ and ‘scrutiny’ being bandied around the contracting world, the whole concept of IR35 is one that quite often strikes fear into any budding freelancer.
Many contractors may be wondering at this point as to whether they should be worrying about IR35. If you are new to the contracting game (or you have been living under a rock) then the whole business regarding IR35 rules may have passed you by, in which case be warned: getting caught by the IR35 legislation could have a huge financial impact.
To establish the seriousness of the financial impact of IR35 you can use our IR35 Calculator.
It does not take a genius to realise that falling inside IR35 can be devastating. Horror stories exist of contractors being scrutinised by the HMRC regarding their IR35 position and losing out massively, thus crippling them financially.
As to whether you should be concerned about IR35, as a contractor you definitely should. Ensuring your safety regarding IR35 is essential to a contractor, and thankfully, the proper protection is available. *See IR35 Insurance. Insurance is a safeguard that contractors should hold to ensure that they are covered should the worst happen.
*KEY POINT* IR35 is a serious business for any contractor operating through a limited company. There is a reason why the IR35 rules exist. Don’t make the mistake of thinking yourself exempt from the IR35 rules and regulations; you are not.