 |
 |
I work in
an office along side other
contractors and employee's
and we all undertake the
same tasks. We have the
same supervisor and take
the same directions. Would
I be within IR35? |
| |
Usually
if you are undertaking the
same tasks as an employee
HMRC would usually state
you are a disguised employee
and therefore within IR35.
Having the same directions
from the same supervisor
confirms this. |
|
I
have to attend the client's
site to undertake the work
but I can arrive when I
like providing I make good
progress within the scope
of the project and have
no direct supervisor. Would
I be within IR35? |
| |
Attending
the clients site itself
would not lead to being
outside IR35. The fact that
you seem to have control
over when you undertake
the work and the fact you
have no supervisor the methodology
of the work belongs to you,
therefore, on the combined
factors your IR35 status
would lend itself to being
self employed and outside
the scope of the legislation. |
|
In
calculating whether or not
a contractor is within IR35
or not, is there one key
factor that determines it? |
| |
IR35
is determined by a series
of factors and the working
practice is key. However,
certain clauses within a
contract would help lend
itself to being outside
IR35 however each case must
be taken on its own merits
and factors. |
|
In
choosing a contract what
should I look out for in
relation to IR35? |
| |
For
contracts to fall outside
IR35 you would be looking
for the right of control.
You would also expect to
put things right in your
own time and at your own
expense. The safer the contract,
generally the more like
normal employment the contract
becomes. |
|
I
am looking for contracts
via an agency. Would this
alone place me within IR35? |
| |
Some
agencies specify that the
end clients insist on contractors
paying PAYE on their income
and therefore, word employment
contracts in such a way
that the contractor would
fall within IR35, by agreeing
to these terms within the
contract you would be changing
the working practice. However
some agencies are happy
for you to negotiate terms
within the contract and
providing the nature of
the contract work is that
of self employment then
IR35 would not apply. The
key is understanding how
the contract will be fulfilled,
and then word a contract
that reflects that. |
|
I
have been contracting for
20 years. Surely IR35 would
not apply as I have not
been an employee for that
long? |
| |
Just
because you have been contracting
for that long doesn't mean
that IR35 does not affect
you. Contractors, regardless
of how long they have been
contracting, can still be
within IR35 as each individual
contract can and will be
different. |
|
I
run three contracts at once.
Am I caught by IR35? |
| |
Unfortunately
the fact that you have three
contracts is not sufficient
to fall outside IR35. You
could find that one, two
or all three of the contracts
fall within IR35 and therefore
you would need to be flexible
to the taxation approach
undertaken against each
one. Each contract needs
to be assessed independently
to understand how each is
affected. |
|
I
am considering contracting
for the first time. The
likelihood is that I would
fall within IR35. What options
are available to me as I
don't wish to run my own
limited company? |
| |
Various
umbrella companies cater
for people new to contracting.
I would suggest using one
of those whilst your contract
falls within IR35. |
