Search Magnifying Glass

Are you at less risk of an IR35 enquiry when engaged by a small company?

Q. I’m a PR consultant and work outside IR35 with a number of clients, the majority of which meet HMRC’s criteria for a ‘small’ company. In fact, I only work with one business that qualifies as a medium or large company. Even so,...

Will a fixed-length contract put me outside IR35?

Q. I typically work on contracts outside IR35 that last anywhere between three and six months. With medium and large private sector companies set to become responsible for administering the IR35 rules from 6th April, I’m concerned that ...

Does ‘financial risk’ mean I belong outside IR35?

Q. My client recently used CEST to evaluate my IR35 status. The tool deemed my contract inside IR35. However, I intend to appeal this determination based on the fact that my company is financially liable for any mistakes made when deliver...

Does IR35 reform apply if I’m based abroad?

Q. I live permanently in Romania. I operate through my own limited company, which is registered in Romania and subject to Romanian taxes. I’m not a tax resident in the UK and haven’t been for well over a decade. However, I do deliver w...

How much will working inside IR35 cost me?

Q. It’s looking very likely that my current client will take a short-sighted approach to IR35 reform and assess me as inside the legislation on 6th April. I’ve always worked outside IR35 and consider myself a genuine contractor, but i...

Can HMRC investigate previous outside IR35 contracts after April?

Q. I work with a large private sector company. My contract is renewed every three months by my client, who I’ve been engaged by for the past six years. Every year I have my working practices reviewed, while I also make sure every new co...

When inside IR35 should I still work through my PSC?

Q. With IR35 reform on the horizon and with it an increased risk of being placed inside IR35 by my client, is there any point in continuing to operate through my Personal Service Company if I’m declared inside the legislation? Or would ...

Do I pay Corporation Tax when working inside IR35?

It's fairly complicated, but assuming that you work inside IR35 on one but not all of your contracts in a year, your business will still need to settle its annual Corporation Tax bill, along with quarterly VAT returns, for example. Howeve...

Can I challenge a blanket IR35 decision?

Q. I currently contract for a large bank that has decided to apply a blanket IR35 decision. It means that I’ll be forced to work via PAYE as my client looks to mitigate against any risks that IR35 reform poses. This seems like a misuse of...

Can IR35 status rest on a fixed price service?

Q. With IR35 reform approaching, like most contractors, I’m keen to continue operating outside the legislation from April 2020 onwards. I understand there are many different factors that need to be considered when determining IR35 statu...

How does entrepreneurs’ relief work?

Q. Due to IR35 reform I’m thinking of closing my personal service company next year and claiming entrepreneurs' relief. First of all, what is it and how does it work?  A. Entrepreneurs' relief is a tax break that means anyone who has ...

Can I work as a contractor and an employee?

Q. I’m currently contracting a few days a week on a 12-month project. Given I have some spare capacity and bearing in mind that IR35 reform is on the horizon - and with it, an increased risk of being placed inside IR35 by my client - is i...

How does the right of substitution work?

Q. I have a number of questions based on the right of substitution. Firstly, what do I need in place to trigger it? Do I need a contract with my substitute and can I provide them with client information so they can deliver the service? Fina...

Can I claim back tax from a wrong IR35 decision?

Q. I've just completed a contract that was deemed to be inside IR35 by my client. Would it be possible to argue the IR35 status afterwards and claim the tax back from the HMRC if I win the case? Or is this likely to cost me more than I coul...

Does IR35 apply to a Statement of Work?

Q. Is there a legally recognised way I can deliver a ‘Statement of Work’ to escape IR35 reform? A. This is a question that keeps cropping up, as IR35 reform approaches. To answer it, yes, in providing a ‘Statement of Work’, which...

Should I renegotiate my contract due to IR35 reform?

Q. I have a current contract running past April, which is outside IR35. Will this need to be renegotiated given it could fall inside the legislation when IR35 reform arrives next year?  If you work with either a public sector body or a ...