IR35 tax specialists, Qdos Contractor, have created a pack of free resources to help professional contractors understand and negotiate IR35 successfully.
Invented in 2000, and made even more potent via the Off Payroll rules in 2017 and 2021, the legislation was created to tax so-called ‘disguised employees’ in the same way as traditional employees.
The main deciding factor when determining if IR35 applies is – would you be considered to be an ’employee’ of your client if you weren’t contracting through an intermediary (your limited company)?
It is important for all contractors to understand the legislation. And do everything they can to keep outside IR35. If your contract work is caught, then you will be financially worse off.
This is where the Qdos Survival Kit comes in…
What is the IR35 Survival Kit?
The Survival Kit has been created by tax and IR35 specialists, led by ex-HMRC inspectors and contract and status experts.
It includes:
Key facts about IR35 (and the more recent Off Payroll rules).
A step-by-step guide to how an HMRC investigation works, in practice.
A checklist of important evidence all contractors should gather
A table to illustrate the actual financial liability of being caught by IR35
Common myths about the legislation
Strengthen your outside-IR35 status
Seb Maley from Qdos explains further:
There is a huge amount of information about IR35 on the internet; some of it is accurate and helpful, but a lot of it is not. It means that getting to grips with IR35 is becoming increasingly difficult for contractors, which is a major problem given the recent increase in HMRC activity.
We feel it is important for contractors themselves to understand IR35 and to know exactly what to expect – and how to react – if they are ever selected for enquiry.
With the IR35 Survival Kit we cover all of the important facts and issues surrounding IR35 in an easy to digest document, which contractors can refer to as and when required.
Collecting evidence of your outside IR35 status
To keep outside IR35, both your contract wording plus the way you work must show that you really are ‘self employed’. One of the best ways to help your cause (should you need to prove it), is to collect evidence that you are truly in business on your own account.
Here are the key pieces of evidence you should aim to get in place:
Professionally drafted contract and a review of your working practices. Read our guide to contract review services for more information.
Confirmation of Arrangements – confirmation from your client that you are working in an outside-IR35 manner. Hard to get clients to sign these, but very useful if you can!
Company stationery – does your limited company have a website, email address, and a letterhead?
Other Documentation – anything else which can help show that you’re a small business personal rather than an employee. For example: proof that you can supply a substitute if you’re unable to work.
Protect yourself against an HMRC IR35 investigation
Award-winning Qdos IR35 insurance – from just £99 per year. Covers £50,000 of legal costs + outstanding tax liabilities if you opt for TLC35. Contract review service also available.
