Business Guides - IR35

What is IR35?

Essentially, IR35 will affect all contractors who do not meet the Inland Revenue's definition of 'self employment'.
Those contractors who fall under the IR35 rules will be liable to Schedule E taxation and National Insurance (N.I), following deductions for expenses. Income will be in the form of a 'deemed payment', following these deductions.

How will I know if I am caught by IR35?

Explanation of IR35 legislation, introduced in April 2000, which affects anyone who is working via an intermediary.

PCG support helps contractor to only the second IR35 win

Lawspeed provide an analysis of the recent IR35 victory and the role the Revenue's error played in that result.

IR35 Case Analysis

Visit our collection of articles relating to previous IR35 cases.

Tilbury Consulting Ltd v Margaret Gittins: initial analysis

Theresa Naylor of Accountax, the firm representing Tilbury Consulting Ltd, on the clarification this decision provides.

Stutchbury IR35 case - Practical Advice for Freelancers

Andrew Leaitherland offers practical advice on what the Stutchbury ruling means for contractors on a day-to-day basis.

Synaptek IR35 judgement - legal analysis

An expert view on the judgement handed down last Friday at the High Court in the case of Synaptek versus the Inland Revenue, aka the Stutchbury case.

Lime-IT IR35 Victory - Full analysis of the decision

The Lime-IT victory is the third and latest decision by the Special Commissioners on IR35. Full analysis of the judgement by John Antell.

Does working at the client's site affect IR35?

It is fair to say that the majority of contractors work on the client's site and usually for fixed hours. The Revenue always contend that these are factors of control and therefore points toward being inside IR35.

Do composite companies help beat IR35?

Since IR35 was announced various inventive means and schemes have been put forward to circumvent the new legislation. But do they really work?

Does the right of substitution defeat IR35?

There has been a lot of debate recently over substitution clauses in agency contracts, and whether they do indeed defeat IR35. In this article I will sum up the Revenue's thinking toward the subject, quoting directly from their employment status manuals.

Why do agencies insist on control clauses in contracts?

In the past many contractors signed contracts with agencies without being too concerned whether or not the detailed clauses reflected the way in which they provided their services to the end client.

IR35: The Obligation of Personal Service: what it is and why it matters

Since the IR35 legislation was enacted in 2000, the finer details of employment law have become a subject of keen interest to many contractors. This article is about one particular essential feature of employment contracts known the Obligation of Personal Service.

IR35: Substitution, Control and Mutuality of Obligation

When deciding whether a contract amounts to employment (a contract of service) or self-employment (a contract for services) there are three essential questions to consider...

Project-based work and operating outside IR35

When attempting to draft a contract that falls outside the scope of IR35 it is very important to look at the nature of the work and to structure the work in the form of a project...

Contract

As most people are now aware a Contract can be written, oral or implied. The Contract is rightly considered to be very important as it sets out the rights and obligations agreed between the Contractor and the Client.

Proper checks

There are many checks to be made to arrive at the correct status of an individual. It is not sufficient to "pick one topic" like substitution or control and base all your arguments on this one point.

Mutuality of Obligation

Mutuality of Obligation is now a common phrase when dealing with Status disputes.

Control

This is one of the main pointers used in disputes regarding employment and self-employment.

Substitution and Exclusivity

This is probably the main point now discussed amongst Contractors, as many incorrectly believe it is the only point needed in a Contract to prove self-employment.

Financial Risk and Payment

Financial risk and payment are one of the main differences between employment and self-employment.

Equipment

This is considered in many cases and can sometimes surprise you with the results.

Part and Parcel of the Organisation

Part and Parcel of the Organisation considers whether the Contractor has now become integrated into the Client Company.

Intention of the Parties

It is often stated that the intentions of the parties is important and there are a couple of questions on the Inland Revenue questionnaire relating to this point

IR35 Links

Please find our collection of useful IR35 links here...

Further Reading

Some more articles to help your understanding of IR35.

                             

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