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Do I need written determination of my IR35 status?

Question

I have a limited company and I am currently working on a project for a public sector end client, through a consultancy firm. I have worked through the consultancy firm for a few years, on different projects with different end clients but these have all previously been in the private sector.

Prior to taking on the public sector project, I clarified (verbally) with the consultancy firm that the engagement would be outside of IR35 and not subject to the off payroll rules and they confirmed (verbally) that was the case. My contract with the consultancy firm supports my status as being outside of IR35 and I have invoiced and been paid as normal through my limited company.

My concern is that I have never had a written determination of my status. Do I need this, or am I ok to continue as I am, with my contract being sufficient protection, (and being paid as normal through my limited company, with no deductions)?

Answer

As you are working for a Public sector body, it is up to them at this stage to determine whether or not your company’s engagement falls inside of the Off Payroll worker regime and that they should be accounting for payroll taxes against you personally.

As they appear to have treated your engagement as falling outside of the new rules, then that should be a sufficient argument to present to HMRC should they enquire into the company’s tax affairs. However, there is no harm in requesting a written confirmation of their determination and the factors at the heart of their decision to treat you outside of the Off Payroll worker legislation for additional evidence in any future enquiry.

This question was answered by Vantage Fee Protect.

By Contractor Doctor

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