Freelancer’s Question: I would really like to hear from someone who has specific experience of setting up a contract to be outside IR35 for my particular area of work; publishing. As all cases are different and treated individually, I believe my area of the publishing industry requires specific attention with regard to the contracts needed.
It is a very casual environment and trying to set up a contract-based on something appropriate for more structured industries, such as IT and accounting, for example, simply isn't going to work. This is all I seem to be able to get advice on, but I’m interested in previous cases of IR35, known as the ‘freelancers' tax, listed by type of business, can anyone help?
Expert’s Answer, provided by Kate Cottrell, founder of IR35 advisory Bauer & Cottrell:
There is no resource listing all IR35 cases, even Her Majesty’s Revenue & Customs don’t keep records. There is a record, however, of the IR35 cases that made it to the Special Commissioners.
I have no doubt that the working practices will differ from other industries but the fundamental IR35 tests will be the same e.g. substitution, control, mutuality of obligation, known as MOO, among the other factors.
Our firm deals with all industries, so I can advise it would be necessary to make sure the true working practices are reflected in the written contracts. For the record, I am aware of a case in 1973 where employment was found for a journalist on the Observer newspaper, based on being an integral part of the business. There was a lot of Revenue activity up to 1984 when some 700 were reclassified as employees. A professional review of the working practices and any written contract should help your situation.
For more guidance on IR35 visit Freelance UK's Tax & Legal section.
Aug 14, 2008
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