Information

The importance of an IR35 Contract Review for private sector contractors

Avatar
Written by Caunce O'Hara
Last updated May 1, 2019

If you are a private sector contractor, you should be fully aware of the private sector IR35 changes that are on the horizon and the importance of an IR35 contract review to clarify your situation.

The rollout of IR35 reform to the private sector, which will come into force on April 6 2020, will significantly change the way contractors work and potentially change their personal lifestyles.

HMRC has spent millions of pounds targeting freelancers and contractors under IR35 legislation.

If you are a private sector contractor who is subject to an IR35 tax enquiry, HMRC will usually request a copy of the contract/s in question and approach the end-client directly to confirm the working practices of the engagement mirror those stated within the contract.

Taking ‘reasonable steps’ towards IR35 peace of mind

To this end, the importance of a comprehensive IR35 Contract Review cannot be understated.

A growing number of freelancers and contractors now have peace of mind regarding their IR35 status as a result of our Contract Review service.

A comprehensive IR35 Contract Review assesses both your contract and your working practices in relation to your contract to ensure you are compliant with the off-payroll IR35 legislation.

Our comprehensive review package fully analyses both the contractual terms and the working practices of the engagement/s using a ‘tried and tested’ IR35 status questionnaire. On completion, you will receive a full report, including any recommendations, to improve the contractual terms which concludes with a “pass” or “fail”.

Undertaking a contract review also shows HMRC that you have taken ‘reasonable steps’ to determine that your status lies outside of IR35. This can help you avoid a penalty (of up to 30% of the tax due) if you are subsequently investigated.

Full written reports are usually completed in five working days.

If you have multiple contracts to be reviewed a bespoke quotation can be provided.

For peace of mind regarding your off-paroll working status a comprehensive IR35 Contract Review is essential. To book yours call our friendly team today on 0333 321 1403

Alternatively, you can purchase a Contract Review online here along with a legal expenses insurance policy


Avatar
Written by Caunce O'Hara
Last updated May 1, 2019

Related IR35 content

IR35 and Umbrella companies – how does contracting through an Umbrella company make a difference?

When the off payroll working rules were introduced into the public sector in April 2017, it quickly became clear to…

Read more

What is my IR35 status?

As a private sector contractor operating through a Personal Service Company (PSC), you can’t afford to wait until April 2021…

Read more

Factors that determine IR35 status

IR35 v self-employment Just to clarify a key point before we begin, a contractor does not have to be engaged…

Read more

New IR35 Rules explained

After being delayed for a year due to the Coronavirus pandemic, the new private sector off-payroll working legislation (IR35) will…

Read more

How to protect against an IR35 tax investigation

If you receive a letter from HMRC regarding an IR35 tax enquiry it is important that you immediately seek advice…

Read more

What is IR35 and who does it apply to?

A useful starting point is to explore the background to the off-payroll working legislation (IR35), because the changes that came…

Read more

Can contractors working on contracts inside IR35 still work through a limited company?

The off payroll working rules, known as IR35, will finally be rolled-out into the private sector on April 6th, 2021….

Read more

Why end-client businesses should make their IR35 decisions now

IR35 decisions can be made now End-client businesses which engage contractors (whether directly or indirectly via agencies) must determine whether…

Read more

Fee payers: Your IR35 responsibilities and your liability

The fee payer is the party paying the contractor’s PSC; i.e. the entity directly above the contractor’s limited company in…

Read more

What to expect from a HMRC IR35 investigation

If you receive a letter from HMRC regarding an IR35 enquiry it is important that you seek advice from an…

Read more

Frequently asked questions about the IR35 in 2021

We have collated some of the most common questions asked about the IR35 changes, relevant to each area of the…

Read more

IR35 Where are we now and what does the future hold?

After the government’s postponement of the IR35 changes, the off-payroll legislation in the private sector reforms are now imminent. The…

Read more

Who pays the Piper? The Relevant Person and IR35 Debt Transfers

One of the most confusing issues with the new rules for IR35 which will come into force next April are…

Read more

6 Questions you need to ask yourself about IR35

The fundamentals of IR35 are NOT changing: understanding the key status indicators – personal service, control, and mutuality of obligations – is…

Read more

The impact on contractors of the deferral of private sector IR35 reform until April 2021

Since Steve Barclay, the Chief Secretary to the Treasury announced a 12-month delay to the IR35 private sector reform in…

Read more

Retain your control as a contractor to keep IR35 at bay

Control is one of the three key points that is used to determine whether a contractor is working inside IR35…

Read more

Why do I need an IR35 contract review?

If you are a contractor with any doubts as to the compliance and validity of your contract in relation to…

Read more

How does HMRC define a PSC?

What is a Personal Service Company? Found across all industries, a Personal Service Company (PSC) is a company which provides personal services…

Read more

What is IR35 and how does it work?

IR35 – or the Intermediaries Legislation – was introduced by HMRC in 2000, and was aimed at individuals who were…

Read more

What is a contract review and do I need one?

A Contact Review is a report that independent tax specialists such as Markel Tax provide to contractors giving an opinion…

Read more

IR35 changes 2021: What you need to know

The Government has reaffirmed plans to make changes to off-payroll working (IR35) rules effective from April 2021. The main principles…

Read more

What is inside and outside IR35

There is no statutory definition of a contract of service (employment contract) and therefore we must look to the courts…

Read more

Will contractors still need insurance for IR35 after April 6th?

Amendment: On March the 18th 2020, the Government announced that the roll-out of private sector IR35 reform would be postponed…

Read more

What is IR35 and how will it affect you as a freelance contractor?

For many freelancers, IR35 sounds like another jargon term that has no relevance to them and there is a concerning…

Read more

The Right of Substitution

The right of substitution is one of the key tests of your IR35 employment status as set out by the…

Read more

Mutuality of Obligation (MOO)

Mutuality of Obligation refers to the obligation of the employer to provide work and pay for it. This is combined…

Read more

Retain your control as a contractor to keep IR35 at bay

Control is one of the three key points that is used to determine whether a contractor is working inside IR35…

Read more

The importance of an IR35 Contract Review for private sector contractors

If you are a private sector contractor, you should be fully aware of the private sector IR35 changes that are…

Read more

What is IR35 and how does it affect you?

Whether you’re new to contracting or an old-hand, the issue of IR35 is never far away.  IR35 status affects your…

Read more

PSCs inside IR35 – Keep Calm and carry out some research

A week on since the Finance Bill 2017 became law public sector contractors who operate through PSCs are facing a…

Read more

IR35 Products & services

Caunce O’Hara’s partnership with Markel enables us to offer a broad range of IR35-based products to protect contractors, fee-payers and end clients across the UK.

IR35 Hub Related IR35 content