Contractors and IR35 in Cumbernauld
The Taxman loses most IR35 disputes!
Please contact us if you would like a free consultation to discuss the tax advantages of contracting in more detail and the different possible scenarios.
We offer all inclusive services for contractors including…
- Company formation
- Annual Accounts
- Company tax returns
- Personal Tax Returns
- Company secretarial service
- Book-keeping
- VAT Returns
- PAYE Returns
- Tax computations
- Review of contracts for IR35 status
- Provision of anti IR35 draft contracts
- Dealing with IR35 disputes
IR35
There are many factors to consider in deciding if a contractor is caught by the notorious IR35 legislation.
Fundamental factors to consider:
- Control
- The right to get a substitute or helper to do the job
- Mutuality of obligations
Other factors to consider:
- Provision of equipment
- Financial Risk
- Basis of Payment
- Opportunity to profit from sound management
- Part and parcel of the organisation
- Right of dismissal
- Employee benefits
- Intention of the parties
- Length of engagement
These are often matters of general employment law, and not specific tax legislation. There is an enormous amount of Case Law in this area and the Taxman is not always right. They do not have the final say on whether somebody is caught by IR35 or not. We can argue your case for you.
The cost of employees and employers national insurance if you get it wrong are considerable as well as interest and penalties.
We can review your existing arrangements and give you our opinion on whether it will stand up to attack from the Revenue. We can help draft contracts for services to assist you and advise on how you can maximise your chances.
IR35 is enough to send shivers down any contractor’s spine. This often complex piece of legislation, initially set in place to keep accounts fair, has left many contractors struggling to operate and sometimes facing unfair attack from the Revenue that’s not always easy to counter.
Luckily, the taxman loses most IR35 disputes, but the vast majority of contractors prefer to avoid the negative attention and time-wasting of being falsely accused in the first place. With professional accounting expertise and unique understanding of the case law surrounding contractors and IR35 and also the technicalities behind IR35 and overseas contractors, the team here at AM Plus Accountancy are in the ideal position to ensure that your accounts don’t come under attack, and more importantly, that they’ll stand even if they do.
THE TAX BENEFITS OF CONTRACTING
Contracting holds some very tempting tax benefits, including the ability to work through a limited company for national insurance savings and flat rate VAT schemes. It’s also possible to receive tax relief on a wide range of expenses, ensuring contractors only ever incur corporation tax on company profits.
Unfortunately, changes to working rules in 2017 have made it much harder for contractors to access these rightful accounting perks. Here at AM Plus Accountancy, we work with a range of contractors to ensure that these restrictions never impact them with a focus on accounting essentials including –
- Company formation
- Annual accounts
- Company and personal tax returns
- VAT and PAYE returns
- Review of contracts for IR35 legislation
- Dealing with IR35 disputes
HELPING YOU TO UNDERSTAND IR35
In theory, IR35 is a simple piece of legislation that aims to combat ‘disguised employment’ within Personal Service Companies (PSCs). Unfortunately, things get complicated where IR35 and contractors are concerned as legislation introduced in 2017 and set to shift again in 2021 means that contracts considered to be ‘inside IR35’ are subject to employee taxes which must be deducted by the fee payer.
Few contractors can afford this, but with the help of AM Plus Accountancy, you shouldn’t need to. Our team have a great deal of experience in these matters and can help you to keep your contracts outside of IR35 by considering key factors including –
- Mutuality of obligation
- Control
- The right to get a substitute or helper
- Provision of equipment
- Basis of payment
- Employee benefits
- Intention of the parties
- Length of engagement
- Location
- And more
LET AM PLUS ACCOUNTANCY SIMPLIFY IR35
IR35 is a complicated and ever-changing piece of legislation that leaves contractors at very real risk of significant financial losses due to misunderstanding, mismanagement, and misrepresentation.
Here at AM Plus Accountancy, Cumbernauld, we have the tools and knowledge that it takes to draft IR35 contracts and agreements that keep you on the right side of these restrictions. From the moment you get in touch with a trusted member of our team, we’ll work alongside you to provide advice, exceed your expectations, and even fight your corner for you should the need ever arise.
IR35 can prove lethal, but remember, you needn’t face this alone.
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Please contact us if you need further advice, have any questions about our services, or would like a free consultation or a fixed quote.
