Navigating IR35 compliance together
Understanding and complying with IR35 can be complex and stressful. Failure to stay in line with the rules can result in hefty penalties and backdated tax and National Insurance charges.
Our expert IR35 accountants are well-versed in the intricacies of IR35 legislation, both for the public and private sectors. We offer contractor-specific advice that allows you to focus on your work while we manage your employment status and tax obligations.
What is IR35?
IR35 is a term often used to describe the off-payroll working rules – a piece of UK tax legislation designed to combat tax avoidance by workers who provide their services through limited companies or other intermediaries.
In the last few years, the legislation has seen some reforms. The recent changes put the responsibility of determining employment status in the hands of medium and large-sized businesses engaging a worker’s services, rather than the worker themselves. (For small businesses, the responsibility remains with the worker.)
These reforms took place in the public sector in 2017, followed by the private sector in April 2021.
What determines my IR35 status?
Your employment status, the nature of your working relationship with your client, and the terms of your contract are key factors in determining your IR35 status, but there are other criteria that come into play.
We offer detailed contract reviews to help you understand your standing.
How do I pay tax under IR35?
This depends on whether you’re considered ‘inside’ or ‘outside’ IR35.
Being ‘inside’ IR35 typically means paying tax and National Insurance contributions akin to an employee, whereas being ‘outside’ IR35 allows for more tax-efficient payments.
Our services can help you determine and optimise your tax position.
What are the implications for personal service companies?
A ‘personal service company’ generally describes a limited company with an individual owner-director who works through the company instead of working directly for clients.
If you’re operating through a personal service company considered ‘inside’ IR35, you may face higher tax and National Insurance contributions. On the other hand, falling ‘outside’ IR35 allows for more flexible payment and reduced liabilities.
What does IR35 mean for umbrella companies?
Working under an umbrella company generally means you’re considered ‘inside’ IR35, as the umbrella company acts as an employer for tax purposes.
However, this may vary in some circumstances, so our specialists can provide you with targeted advice.
Can I switch between ‘inside’ and ‘outside’ IR35?
Yes, your IR35 status isn’t static and can change based on your contracts and working practices. Frequent evaluations are recommended to stay compliant.
What’s the risk of non-compliance?
Failing to comply with IR35 legislation can result in substantial penalties, backdated tax and National Insurance contributions, and potential legal issues.
Consulting an IR35 accountant can mitigate these risks effectively.
Why do you need an IR35 accountant?
Proactive contract reviews
Contract reviews are not just a one-time affair. Legislation changes and so can your work scope. Regular reviews ensure continuous compliance.
Navigate tax and National Insurance contributions
An IR35 accountant can help you optimise how you pay tax and National Insurance, potentially saving you a significant amount of money.
Whether you operate in the public or private sector, understanding the complex nature of IR35 and its impact on you can be difficult. Our expertise simplifies this for you.
Personalised support for small businesses and startups
Small businesses and startups often have unique needs and limited resources. Our IR35 service is tailored to offer comprehensive support without overwhelming you.
Our approach — the human touch
In a world dominated by numbers, we prioritise people; the human touch. Our unique approach sets us apart, creating lasting relationships built on trust, understanding, and mutual respect.
We genuinely care about the well-being and growth of your business, going the extra mile to ensure your financial stability and success. We’re approachable and available, always ready to lend a listening ear and provide expert advice tailored to your specific needs.
What to expect
Why choose our IR35 accountant services?
Specialist contractor accountants
Our team consists of specialist contractor accountants well-versed in IR35.
We don’t just ensure compliance; we offer comprehensive accounting services for all aspects of your business.
Laws and working practices change. We adapt our services to keep you perpetually compliant.
We genuinely care about your business and offer a personalised approach to all your accounting needs.
We keep abreast of all legislative changes so you don’t have to.