Many contracts for finance professionals will be interim management roles, where you will often have staff within the client organisation reporting in to you as their line manager for both HR and operational purposes.
These roles also often come with a requirement for personal service. In other words, it is the services of you as the consultant that the client wishes to engage rather than that of your limited company.
These two elements of the interim manager’s working day will at first seem incompatible with operating your contract outside of IR35. However, this does not necessarily have to be the case.
The first step is to give your proposed contract to an experienced professional to review for compliance with IR35. At Integro Accounting an informal review of your contract is provided as part of the monthly service and a full written review can be provided for £150 + VAT.
The next step is to assess the proposed working practices of the contract. Whilst your personal service may be required it is likely that you will have a high level of control over the way in which the department and the functions within it are run. You are also likely to be engaged to see the finance function through to an end goal with no ‘mutuality of obligation’ between you and the client. This means that two out of the three cornerstones of being outside of IR35 could well be in place, and if that is the case you may well be able to trade outside of IR35.
The final step is to continually review your working practices whilst working on the contract. Interim management roles often lead to offers of permanent employment and it is therefore important to draw the line between working as an independent contractor and becoming a permanent employee in the right place.
If you are ever considering going to permanent employment from a contract role then do speak to your accountant before you agree to any changes, as it is important to do some tax planning at this point and consider all the options open to you.
Why Integro Accounting?
Integro Accounting is the UK’s only specialist provider of fixed fee, limited company accountancy services for contractors, consultants and freelancers that was established to an award winning standard – our Practice Manager, Maria Williams, won The British Accountancy Awards’ ‘Accountant of the Year’ in 2011.
We were set up with the vision of providing a service that is the ultimate for the dynamic, busy professional of today in a language you understand.
Integro Accounting have designed a bespoke service for the contractor who is always on the go; never forgetting that one size will never fit all.
The relationship you have with your accountant is the most important factor in our service which is why we will always offer unlimited contact with your own personal accountant; whether that contact is via the phone, email or face to face.
We have our 3 offices located in London, the South-West and on the Bedfordshire and Buckinghamshire border. There are also meeting locations in many of the major cities and towns across the Home counties, South-West and South Wales, all conveniently placed so that you never have to travel far to meet your accountant.
If you have any questions about contracting or would like to find out more about how Integro Accounting can help you and business please call Christian on 01525 303984, email email@example.com or request a callback.