Due to the increasing number of workers in many industries (though particularly IT) treating themselves as small business owners despite working for the same big business on a regular basis, HMRC introduced the IR35legislation in an attempt to secure more tax and national insurance from them.
The legislation itself is a nightmare to read, but several court cases and judge’s decisions have lead to a few basic points. You are caught by the rules if you meet all of the following criteria:
If, even after reading the above three criteria, it is still not entirely clear (it often isn’t), then there are other basic indicators to suggest that you are running your own business rather than an employee:
If you’re nervous about the above (most contractors are due to the unclear nature of the legislation) then we recommend QDOS, who offer individual contract reviews, and also IR35 insurance policies to help defend your company against IR35.
If you would like to discuss this further, or simply need the assistance of a qualified accountant regardless of which side of the IR35 fence you are on, do give us a call.
Remember with the wonders of the internet, specifically the IT contractor specialist package FreeAgent, we are able to help with our contractor accountancy package for clients anywhere in the UK!
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