In light of reforms to the off-payroll rules coming into force in both the public and private sectors from April 2021, the end client will be obliged to provide the contractor with an official Status Determination Statement (SDS). The statement must confirm whether an engagement is inside or outside of IR35 and provide an explanation for this decision.…
READ MOREIn the event of an IR35 investigation, many contractors find themselves without any paperwork to support their daily working practices. HMRC will look for proof that the contractor is subject to direction and control, or that they’re part and parcel of the client company.…
READ MOREThere has been considerable debate over the introduction of off-payroll working rules in the public sector, which are also set to apply to the private sector by 2020. The changes place the responsibility for determining whether IR35 applies to a contract with the government organisation that is paying the contractor.…
READ MOREThe Chancellor’s budget announced that off-payroll rules will hit the private sector in 2020. Amidst uncertainty over Brexit, there are widespread concerns that the reforms will damage business and weaken the economy at a critical time. ContractingWise takes an overview of the off-payroll developments to date.…
READ MOREIn the event of an IR35 inquiry, HMRC will attempt to establish the true relationship between the contractor and the end client in order to determine employment status. As many contracts are generic, the investigating officer will often place more emphasis on what’s known as the ‘hypothetical contract,’ formed by the impressions they gather about the day-to-day working practices of the contractor while on a given assignment.…
READ MOREA right of substitution clause states the contractor’s right to send a replacement in their place if they are unable to work on the contract. While having a right of substitution clause in your contract won’t guarantee that you’re outside IR35, it’s part of an important set of factors that can help to prove your self-employed status.…
READ MOREThe Inland Revenue’s 35th press release in 1999 was titled IR35: Countering Avoidance in the Provision of Personal Services. It was released on the same day as the budget statement and continues to exist. The legislation was designed to tax “disguised employment” at a rate similar to employment.…
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