If you believe you are impacted by IR35 call Lewis Smith & Co. today on 01384 235549. We help many contractors solve their IR35 issues.
The following is a non-exhaustive checklist of some of the factors the Inland Revenue would use in assessing whether income from a particular contract is subject to the IR35 rules:
|Badges of Trade||Indicative of Self Employment||Indicative of Employment|
|BASIS OF REMUNERATION||Remunerated on a project basis, or at a fixed price.||Remunerated on a time basis. Paid holidays, sick pay etc.|
|RIGHT OF CONTROL||You have the right to decide how, when and by whom a job is done. Can send substitute to do job.||Close directional supervision by your client (master – servant relationship). Client can dismiss you.|
|TOOLS OF TRADE||You supply large or expensive equipment, and may work from your own premises.||Provision of only small or no equipment. Work at client’s premises|
|TRADING STRUCTURE||Trade with more than one client at a time, or work on short successive assignments with different clients.||Long term assignments with the same client.|
|FINANCIAL RISK||A loss can be suffered. All rejected work to be corrected at your own cost. Penalty clauses. A larger profit can be made from sound management.||No financial exposure. All rejected work to be corrected at your client’s cost.|
|BUSINESS ORGANISATION||Own premises, letterheads, other employees, insurance etc. Quoting for jobs in advance. Advertising||None.|
|TERMS OF ENGAGEMENT||Contracts or understandings which record the above.||Contracts or understandings which do not record the above beneficial badges of trade, or no contracts at all.|
Lewis Smith & Co. provide accountancy services to a wide variety of contract based workers including architects, builders and IT professionals. If you are unsure of your position regarding a contract then feel free to call Andrew Smith or Craig Beale on 01384 235549 or email firstname.lastname@example.org and we will do our best to help.
Latest news – IR35 investigations on the rise