Top 5 things contractors can take away from the IR35 consultation
The recent IR35 consultation issued by HMRC has reaffirmed that the Off-Payroll rules, in force in the Public Sector, will soon be extended to the Private Sector. We have therefore identified some key points that contractors should be aware of: 1) The changes are happening Many contractors expressed concern with the upcoming changes and urged […]
What does being inside IR35 mean for your contractors?
When determining a contractor’s employment status, the outcome will be either inside or outside IR35. If a contractor is deemed to be inside IR35 it means they are not operating compliantly with the Intermediaries legislation and are therefore not entitled to the preferential tax treatment afforded to limited company contractors. If a contractor is deemed […]
IR35 Employment Status – Who is Responsible?
IR35 is tax legislation introduced in April 2000 to counter what HMRC class as disguised employment. As a contractor, your ‘IR35 status’ effectively determines your tax position with HMRC. Contractors who are treated as being truly independent from their client may be entitled to advantageous tax treatment which reflects the business risks that they are […]
IR35 Contract Clauses Guidance
When engaging with your flexible workforce it is important to put in place a contract which clearly establishes whether a contractor is ‘inside IR35’ or ‘outside IR35’. If you reach a decision that a contractor falls outside of IR35 you need to ensure that the contract reflects this position. A standard contract should consist of […]
Atholl House Productions Ltd V HMRC (2019)
Loose Women and BBC presenter Kaye Adams has successfully appealed a £124,000 tax bill from HM Revenue & Customs (HMRC). Ms Adams’ Limited company, Atholl House Productions Limited, received notice that HMRC had conducted an inquiry into her involvement with BBC Radio Scotland between March 2015 to April 2017. Consequently, HMRC formed the opinion that […]
Being ‘Outside’ or ‘Inside’ IR35
As employment status and IR35 is so important, below we will take a look in more detail at the factors that are taken into consideration when assessing IR35 compliance, and how you can mitigate the risks associated with disguised employment. If an assignment contains evidence of ‘employment indicators’ and has the same level of risk, […]
Albatel Limited v HMRC – UKFTT (2019)
Well-known television presenter Lorraine Kelly has successfully appealed an IR35 tax bill assessed by the HMRC at the sum of almost £900,000. Albatel Limited, Ms Kelly’s limited company, saw the HMRC conduct an initial inquiry into its engagements with ITV Breakfast Limited, which took place between September 2012 and July 2017, the conclusion of which […]
Flat Rate Scheme
When first starting out in contracting there are a number of things to consider, one of which is how you account for VAT and whether to use the Flat Rate VAT Scheme (FRS). But what actually is FRS, what are your options and how does it ultimately affect your take home pay? The following guide […]
Introducing VAT
Introducing VAT for contractors Most Limited Company contractors register their company for VAT purposes and benefit financially from doing so. There are different types of VAT registration to consider, so make sure to discuss your accounting options with your Limited Company contractor accountant before applying for VAT registration. The following VAT guide is written to […]
What you need to know about IR35
Seasoned contractors and contractor accountancy services will be well rehearsed in the art of IR35, but if you’re new to the game it can be a bit confusing. So what is IR35, how does it affect you and what changes can you expect over the next couple years? In this blog, Patrick Gribben, Head of […]