Improving Your IR35 Position

For those contractors working outside of IR35, there are many things you can do to reaffirm your status as such, including:

     Bullet Point    Remember at all times you work for your company providing services to a business
     Bullet Point    Demonstrate control over your working practices
  Bullet Point    Ensure you have and can exercise your right of substitution
  Bullet Point   Have every contract checked from an IR35 perspective prior to commencing the role
  Bullet Point   Certify you pay for all of your own training courses
  Bullet Point   Always use your own equipment
  Bullet Point   Never use the end clients’ logo or details on your email signature
  Bullet Point   Do not use the subsidised staff canteen or similar
  Bullet Point   Establish a company website
  Bullet Point   Use company stationery such as business cards and letter headed paper
  Bullet Point   Rent an office or work from home

Keep all correspondence, including contracts and emails relating to each role for a minimum of seven years

If you receive an IR35 status letter from HMRC, contact Larsen Howie straight away to claim on your insurance or talk to us about how else we can help you, including representation Ensure you have business insurances such Professional Indemnity, Public Liability, Employers Liability, Conractor Legal Protection and IR35 Tax Investigation & Liabilities Cover in place If you find your contract is inside of IR35 then pay the correct taxes and ensure you are compliant for the period of that contract If you are caught by IR35 then any penalties incurred can likely be minimised if you can prove to HMRC that you have taken reasonable efforts to confirm your status by following the above.

Taking out an IR35 Tax Investigation & Liabilities Cover insurance (Coming Soon) can save a contractor up to 6 years’ worth of back tax and NIC liabilities plus interest, and a penalty which can be anything up to 100% of the liabilities owed, whilst Professional Indemnity Insurance covers you for the legal costs and damages incurred when a claim is made by a third party alleging professional negligence such as errors or omissions in the service you provide.

Having an IR35 Contract Review - Assessment or an IR35 Contract Assessment - Full as well as an IR35 Working Rractices Review undertaken on each contract will assist you in proving to HMRC, if questioned, your IR35 status. Regular reviews are important as your working practices might change, even during a contract.

Next: IR35 Facts & Figures >>> Read >>>