The IR35 legislation is a piece of tax legislation which is based on determining a worker's tax status according to the way in which they operate their services. The legislation will be relevant to any UK contractor operating via a limited company. Follow the links below for the latest news, articles, and guidance on IR35 from renowned experts.
Qdos Contractor have been defending contractors against IR35 since the legislation was introduced. The legislation is based on historic case law, so each significant case can determine how IR35 is assessed. For the best part of IR35's life however, there have been three key tests, namely; the right to provide a substitute worker in order to fulfil the contract, control over how the contract is delivered, and the lack of existence of a mutuality of obligations between the parties (however this third test, often shortened to MOO, has been misinterpreted on numerous occasions).
With these three tests (plus a plethora of other supporting tests such as financial risk) Qdos, HMRC, and the courts determine the IR35 status of a contractor operating as a limited company. The responsibility for determining IR35 lays at the feet of the contractor themselves, and failure to assess appropriately and pay the relevant taxes, can lead to a lengthy investigation and eventual payment of liabilities, interest, and potential penalties.
The IR35 Advice Centre has been designed in order to keep you up to date with the latest news, provide you with a wealth of resources and guidance to help you remain compliant with the legislation, whether that is inside or outside of the IR35 rules, however we always recommend that you seek expert help for reviewing your contracts and tackling an IR35 enquiry. Get in touch with our consultancy team today on 0116 269 0992 for more information.