A significant part of establishing your IR35 status is to take a look at the contract between your limited company and your end client or agency.
In a contract between a genuinely independent limited company and their client / agency we would expect to see a number of clauses that strengthen the case for not having to apply IR35 taxes. There are three significant areas to look out for: the amount of control that the limited company has over the way the work is conducted; whether personal service is required or whether the limited company can send an alternative worker in place of the original; whether there is any ‘mutuality of obligation’ between the parties, meaning whether both parties are obliged to continue offering and accepting work both in the present and the future.
UK legal precedent requires all three of the above to fall in favour or an employee / employer relationship before it can be said that an employment relationship exists. In other words, if just one does not fall in favour of employment, then there cannot be an employment relationship, and IR35 cannot apply.
But again, deciding where to draw the line between independent status and an employment relationship in each of these three areas is complex and it is therefore a good idea to have your contract professionally reviewed before deciding on your IR35 status.
Informal contract reviews are included as part of Integro Accounting’s fixed monthly fee and formal written reviews can be supplied for £150 + VAT.
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 firstname.lastname@example.org or request a callback.