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IR35 Explained

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IR35 guide download

Our free guide explains what IR35 is, outlining the rules and legislation and how it will affect you.

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With over 14 years' experience dealing with IR35, in partnership with Brookson Legal Services, we’re here to help you keep the taxman happy. We have more than 70,000 customers and HMRC have never upheld a single IR35 claim. With us, you know you’re in safe hands.

What Is IR35?

IR35 is the industry name given to laws set out in the Finance Act 2000. The legislation is intended to prevent individuals from avoiding tax by ‘disguised employment’ - working as self-employed contractors through their own limited company even though they do the same job as an employee.

If HMRC decides that your contract puts you within IR35, you’ll have to pay tax and National Insurance like an employee, rather than taking your director’s fee and dividends. So it’s important to make sure you’re entitled to every penny you take from your company.

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For example, an IT technician might leave their permanent job on the Friday, only to return on the following Monday as a contractor, performing exactly the same job in the same was as they did before but working via a limited company intermediary.

If the relationship between the worker and the client would be classed as employment if there was no intermediary, the IR35 rules make sure that the worker pays similar income tax and National Insurance Contributions to conventional employees.

For more information, download our FREE guide to IR35.

How to compy with IR35

An IR35 review will help you to ensure that you comply with your tax and NI obligations while working on longer term assignments. Your IR35 status depends on:

  • The terms of your contract
  • Your working practises
.

Brookson offer unlimited IR35 Compliance reviews as part of our Limited Company Service, with a refresher review every six months to give you complete peace of mind.

Pre-Assignment Review

Simply send us your contract before your assignment starts and we will review it to ensure it supports you as an independent consultant.

If your contract needs to be changed, Brookson Legal Services will provide all the help and guidance necessary to ensure you begin with a strong and clear financial position and can also assist in discussing the terms of your contract with the agency and/or client. You can also use a pre-assignment review to discuss any queries about your proposed working practices.


Full Assignment Review

Send your contract and a completed Employment Status Assessment Form to Brookson Legal Services and they will carry out a full review to confirm your IR35 compliance.

Brookson Legal Services are happy to discuss any areas of your contract which you feel do not reflect your working practices, or those consistent with an independent consultant.

As specialist advisers Brookson Legal Services can answer any queries you may have regarding your employment status – and the status most suited to you.

 

Refresher Employment Status Assessment (RESA)

Circumstances change, and it is easy to get left behind. It is recommended that if your assignment has lasted more than six months, a review of your working practices is carried out to ensure you are still IR35 compliant.

Brookson Legal Services are on hand to guide you through the process quickly and painlessly, helping you to stay compliant and giving you the knowledge to avoid complications in the future.

 

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