Advice on IR35 and Contract Service Companies
With the potential to save around £12,000 year in tax, most service based contractors are usually interested in structuring their work practices to fall outside of IR 35. All such businesses must assess their current working practices and decide which of the following options is most relevant to them:
If it appears IR 35 does apply:
- Accept that IR 35 cannot be avoided, and:
- Comply with the prescriptive requirements of paying an actual or ‘deemed’ salary, or
- Seek an Inland Revenue ruling on status, or
Cease trading through your own personal service company and transfer onto the payroll of your client, Amend your actual and documented contractual arrangements and actual work practices to keep outside of IR 35 – this is where we can help.
If it appears IR 35 does not apply then we have a number of options:
- Seek a HMRC ruling on the company status, or
- Continually improve actual and documented practices to evidence your opinion that IR 35 does not apply – this is where we can help.
One of our more popular IR35 accountancy services involves reviewing your current work practices and providing an opinion on how we believe HMRC would categorise you. We will prepare a detailed report on the positive, neutral and negative aspects of your current working arrangements and make practical suggestions on improvements you may wish to consider, if commercially acceptable to both you and the client.
Whether or not IR 35 applies, we offer a mix of services that most Contractors will need, as back office support, to run their business:
- VAT Returns,
- Company Secretarial,
- Statutory Accounts,
- Corporation Tax,
- Personal Tax,
- Pro-active tax, finance and business advice.
We understand how important it is to you that you stay outside of the requirements of IR35. We also understand how you need to be told the truth, even if it means IR 35 does apply and probably always will