IR35 – or to give its full title, the Intermediaries Legislation – is a UK legislation which came into effect in April 2000 and was designed to target what the then Inland Revenue perceived as ‘disguised employment’: contractors whose relationship with the businesses that engaged them was more akin to employment.
IR35, at is core, seeks to establish a hypothetical contract between the worker at the bottom of the chain and the end-client at the top – effectively it says: “if there was a direct contract between the worker and the end-client then would that contract be one of employment or self-employment?”
In order to draw up this hypothetical contract, we have to look at everything, which is relevant to the provision of services, which currently exists between the worker and the end-client. This requires looking closely at contracts and working practices.
We have been advising and defending clients against IR35 challenges since the introduction of the legislation 20 years ago. We offer a complete package of due diligence services to ensure you are well prepared and protected.
Markel Tax’s FeePayer Protect insurance is specifically designed to defend against an HMRC enquiry and even the potential tax losses where you are also the fee payer. What’s more, we are able to provide you with contract reviews including the whole supply chain from end-client through agency to the contractor, support in drafting an SDS, as well as training and on-going support from our tax experts.
Speak to our team today to find out how we can help you protect yourself against IR35 risks. Call 0333 920 1589 or request a call-back.