 |
 |
You cannot
avoid IR35 and you cannot
choose your own IR35 status
(and neither can your client
or agency): it is determined
purely by your contract
and working conditions.
|
|
Your
contract must reflect the
reality of your working
conditions and the services
you provide as it could
be checked by HMRC. Contractors
have tried to put themselves
outside IR35 by adjusting
the wording of their contracts,
but this does not protect
them from IR35 legislation.
You should think very carefully
before challenging your
IR35 status as this runs
the increasing risk of an
HMRC investigation and the
danger of backdated tax
demands, interest payments
and a fine. |
|
If
your contract is inside
IR35 and therefore subject
to deemed employment, you
can operate your payments
through PAYE even though
this is not tax efficient.
Contractors outside IR35
would, in the past, form
their own limited company
and pay themselves via dividends,
Whatever your status, there
are alternatives and you
may still be able to increase
your net income. |
|
The
introduction of IR35 led
to the creation of a service
industry dedicated to supporting
the lucrative contractor
sector and offering (not
always legally) a variety
of payment solution options
<link to 'What are your
payment solution options'>. |
| When
looking for a company to
manage your payments, you
should check that: |
|
Their
payment solutions are fully
HMRC compliant and insured,
offering you complete protection
against IR35. |
|
They
offer solutions both for
inside and outside IR35,
as your status may vary
from contract to contract |
|
They deal with all your
taxation and contract paperwork
- so you don't have to. |
| If
a company meets these criteria,
you can then ask them to
provide a personalised illustration
for you. |
