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What is IR35?
The so called "IR35" legislation is enacted in Schedule 12 Finance Act
2000 and the Social Security Contributions (Intermediaries) Regulations
2000.
IR35 is the name of the press release issued by the Inland Revenue announcing
the impending legislation in April 1999 and the name has been adopted
as a generic name for the legislation ever since. Falling within the IR35
tax rules could reduce your income by around 15-20%.
All the working arrangements are relevant to determining IR35 status.
Of primary importance is the work and nature of the work, and the contracts
that the company enters into serve as supporting evidence. If the engagement
would have been one of employment if it were not for the existence of
the intermediary, the tax is payable by the intermediary.
The test of liability is wholly legal and is a test based upon employment
status case law. As such, in order to advise correctly it is essential
to have a strong understanding of employment law and the principles involved.
Those principles include a good grasp of contract law and the meaning
of clauses, a comprehension of the intention of the parties to the contract,
as well as interpreting legislation and case law precedents.
Lawspeed is
a specialist legal adviser in this field and has assisted literally thousands
of contractors, interim managers and freelancers since 1999. It provides
cutting-edge commercial contracts, advice and specific action points.
We strongly recommend that contractors seek proper objective advice from
specialist advisors such as Lawspeed
before:
- agreeing contract terms provided by an agency or client
- concluding that IR35 applies to their arrangements
- entering into any dealings with the Inland Revenue on issues relating
to IR35
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Get the best IR35 advice and contracts - contact the Lawspeed
Contractor Support team on 01273 236236
contractor@lawspeed.com
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