IR35 in the Private Sector - ICS Accounting
- 1. IR35 in the Private Sector
- 2. IR35 legislation was introduced with the Finance Act of 2000. Its purpose is to determine if contractors are “disguised employees” If deemed ‘inside’, for any work carried out after April 6th 2020 tax and National Insurance contributions will be due, the same as a permanent employee
- 3. The April 2020 changes will move the liability from the contractor to the end client/fee payer to make the status determination The factors determining IR35 remain the same
- 5. Control: Does the end client have the ability to tell you how, when or where to undertake the work? Right of Substitution: Can you send a substitute in your place? In practice, would the end client allow you to? Mutuality of Obligation:Mutuality of Obligation: Is the end client expected to offer future work, and are you expected to accept it?
- 7. Does you use the client’s equipment or your own computer or tools? Do you have a designated parking space, or are you a ‘visitor’? Do you wear a company uniform or badge, or have company business cards? Do you appear on the company organisationDo you appear on the company organisation chart, website or phone lists?
- 8. If you answered ‘yes’ to any of the questions it could work against you in an investigation Your IR35 status is determined on each assignment you undertake and you need to ensure your contract details match your working practices We suggest you undertake an individual IR35 reviewWe suggest you undertake an individual IR35 review every time you start a new assignment to ensure you are working compliantly
- 9. What Do I Need To Do?
- 10. Contact your end client to see how they are assessing roles Speak to your accountant about the most beneficial option available to you Check your contract details match your working practices • • •
- 11. Questions? Call our IR35 Helpline for free, no-obligation advice on: 0800 880 7056