TAXguide 10/18: IR35 contract reviews

In TAXguide 10/18 Kate Cottrell explains the process required to perform an IR35 contract review, problem areas to watch out for, details of HMRC’s free service and what the implications are when things go wrong. Read a summary here, Tax Faculty members can download the full guide.

Overview

Deciding whether or not IR35 applies to a particular engagement is probably the most important decision your clients have to make. It not only affects current income calculations but to get the decision wrong can prove extremely costly.

Where an engagement is found to be inside IR35 then essentially, employed levels of tax and national insurance contributions (NIC), including employers’ NIC, are payable and since April 2016, no relief is available for travel and subsistence costs incurred attending the end client’s site.