Many contractors don’t know whether their activities fall inside or outside of IR35.
IR35 status determines whether you are self-employed or not, and many companies have found themselves in hot water after enlisting the services of people that work on a full-time basis for them but treating them as if they were self-employed. One Click Group has written a full IR35 guide.
Why might someone be outside of IR35?
Failing a few status tests doesn’t automatically mean you will be treated by HMRC as if you are inside IR35. If you do not receive employee benefits, do not feature on a business’ list of employees and are permitted to choose your own hours, you are likely to fall outside of IR35.
This may also be the case if you buy your own equipment with your own money and if a business is able to terminate your services without giving you any prior notice.
Am I inside IR35?
If a business is obligated to provide you with work and you don’t have the right to provide a substitute when your services are unavailable, you may fall inside IR35.
You may also be deemed to part of IR35 if you only work for one client. It’s vital to get the wording right if you are signing a contract to provide services for a client. The contract should state that it is a business-to-business agreement to provide such services.
Why One Click Group?
At One Click Group, we can come to your assistance if you need advice on IR35.We have more than two decades of experience in the contractor services sector, and are wholly compliant with all relevant tax and employment legislation.