IR35 Reviews
As either a worker operating via an intermediary or a contractor hiring workers through an intermediary, you may wish to protect yourself from the potentially expensive HMRC enquiry process by conducting a professional IR35 contract review.
What Is IR35?
IR35 refers to the name of a press release that explained planned changes to the way certain workers, operating via an intermediary, would be treated for tax purposes. The details of IR35 are set out in leglisation, specifically the Off-Payroll Working Rules (ITEPA 2003, Pt 2, Ch 10) and the Personal Service Company Rules (ITEPA 2003, Pt 2, Ch 8).
What Changes Have Been Made?
From April 2021 (delayed from April 2020, due to the Coronavirus pandemic), changes were made as to which party is responsible for assessing worker status and who would be liable for any tax due as a result of a HMRC enquiry.
Following the changes, medium and large-sized businesses are now responsible. However, if a worker is engaged by a small business, via an intermediary, the onus will remain on the worker to determine their status.
How Can You Protect Yourself?
Under the Off-Payroll Working Rules (ITEPA 2003, Pt 2, Ch 10), failure to take reasonable care in considering the employment status of a worker operating through an intermediary will result in responsibility for the PAYE and NIC tax liabililty. A good method of showing that reasonable care was taken is to undertake a professional IR35 Contract Review in advance of any challenge. At Maximoor, your IR35 Review will be signed off by a Chartered Accountant and Tax Lawyer, showing you went to great lengths to meet your responsibilities.
You can also take out insurance to cover legal defence costs. We can refer to you to one of our insurance partners.
Our Services
Single Review
£199
For Sub-Contractors, we will review the contract between you and your Contractor and give our professional opinion on whether this contract shows the hallmarks of employment, self-employment or both.
Multi-Review
£399
For Contractors, we will review the contracts between you and your Sub-Contractors and give our professional opinion on whether these contracts shows the hallmarks of employment, self-employment or both. We will also provide suggestions on ways in which you can alter the contracts and roles to give the desired outcome.