IR35 Contract Review and Assessment
Your IR35 contract review is conducted by a team of specialists, who are there to advise you whether you are ‘caught’ or ‘not caught’ by the IR35 legislation.
So what exactly is IR35?
IR35 is legislation that was introduced in 2000 designed to eliminate the prospect of contractors successfully disguising the true nature of their working status, whether that is done knowingly or not, in order to avoid paying the correct amount of tax.
The regulations of IR35 are applied to every contract that you work on. Please read more in our Legislation Guide – IR35.
What does ‘caught’ and ‘not caught’ mean?
- ‘Caught’ – this is when the candidate is working as though they are an employee of their client
- ‘Not Caught’ – this is when the candidate is working as though they are genuinely in business on their own account
If you are using your psc or your own limited company, your IR35 status tells you the way that you should be taxed.
If you are ‘not caught’ by IR35, then you are able to process dividend payments through your limited company which is the most efficient way to be taxed generating greater take home pay.
If you have been deemed ‘caught’ by IR35, then you need to have all your payments taxed as if you were a PAYE employee which is less tax efficient and reduces your take home pay for that particular contract.
The outcome of an IR35 contract review can therefore influence how you structure your payments and dramatically impact the percentage of take-home pay that you receive.
Need an IR35 status review?
Determining whether you are caught by IR35 or not is your responsibility, but it doesn’t mean you are alone. The only way to be sure whether your contract falls inside or outside IR35 is to have it reviewed by a specialist. We can recommend a third party who will be able to carry out these checks for you to ensure you stay compliant with all the relevant legislation.
If you’d like more information then do not hesitate to call us on 0844 854 5230.