What Is IR35?
The term IR35 stems from press release number 35 that was published as part of the budget papers back in 1999. It announced new legislation, effective from April 2000.
The essential concept of IR35 is straightforward. It effectively takes your company out of the picture, and looks at the direct relationship that would exist between you personally and the client. Of course you do not actually have a direct contract with your client, and this is where the so called ‘hypothesis’ of IR35 comes into play. If this hypothetical direct relationship between you and your client amounts to employment, IR35 applies.
How is IR35 status decided?
IR35 is concerned with showing that you are not a “disguised employee” of your client and it is necessary to look at all the factors in the relationship. This includes all the terms and conditions set out in any written contract as well as what actually happens in reality. We are looking for terms and conditions that point towards self-employment as opposed to employment.
How Can London 1st Help You?
Our IR35 review is designed to look for risk and manage that risk, where possible, in a sensible and clear-cut manner.
London 1st has been assisting contractors with their limited company accounts since before the IR35 legislation came into being and have studied and followed closely the impact it has had on the contractor market.
Included in all of our services is a free review of your contract in order to help you decide on your IR35 status
Initial Contract Review
London 1st will review your contract before you start your assignment so that you can be confident of your status with regards to the IR35 legislation.
This review is included as part of our Business Support and Accounting Support Services and includes:
• Ensuring that the contract supports you working as an independent consultant under IR35
• Provide you with advice should the contract need to be changed
• Discuss proposed working practises
Independent External Review
London 1st has built a strong relationship with the premier IR35 lawyers Bauer & Cottrell ensuring you get the best available advice at an affordable rate and in the time that you need it.
If during our initial review we feel a more in depth assessment of your contract and working practices is necessary then we will refer you to Bauer & Cottrell for a full and binding opinion.
Bauer and Cottrell were founded in 2003 and is staffed by ex Contributions Agency/Inland Revenue inspectors
They have won every IR35 case they have worked and are recognised as leading UK experts in this field.