IR35 Article

4 Things you should know about IR35 and the Private sector

4 Things you should know about IR35 and the Private sector 960 540 nbempong

4 Things you should know about IR35 and the Private sector

Now that plans to roll out IR35 to the private sector are well under way, you should look at what you need to do. When it rolled out to the public sector, contractors fled to the private sector. IR35 is being forced on the private sector. There is nowhere left to run (in the UK). All is not lost, there are some steps you can take to ensure that your contract doesn’t put you under IR35.  

1. You need to be in control:

You need to make sure that your client let you know what needs to be done but is not specifying exactly how it is done. You can go so far as to specify that you control, where, when and how work is carried out. 

2. Secure the right to substitution and exercise it if possible: 

A This means that you can send in someone else to carry out the work if you need to. You can only do that if you have someone qualified to carry out the task available and the client is happy with this. 

3. Mutuality of Obligation:

Most contracts I came across even before IR35 would state there is no obligation for the client to provide you with work and there is no obligation for you to accept it.    

4. You have business risk:

Maybe If a mistake is made your company is liable and must bear the cost. You should have insurance to cover the risk.

Some other factors that can indicate your IR35 status include:  

  • Whether you use your own equipment or the company’s. Use your own whenever possible. 
  • Your contract has a start and end date. 
  • You are not treated like all other employees.  Keep a diary to show examples of when you were treated differently. 

Conclusion

With this guide you should be able to control your IR35 status. There’s no guarantee HMRC won’t claim you fall inside IR35 but you will be able to defend yourself. So far HMRC have lost most cases they have investigated (link here).  

If you would like to discuss this further or have questions related to IT Recruitment in London contact us on hello@sapientrecruitment.co.uk. You can also call 020 7566 1199 or visit our site and arrange a call-back www.sapientrecruitment.co.uk/contact  

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