Is IR35 causing you confusion? Are you not really sure if it applies to you or not?
Well, first things first – it doesn’t apply if you’re a sole trader or freelancer.
Limited companies with 1 shareholder or director are the ones to likely get caught out by it here.
If you look like a legitimate 3rd party provider, you’ll be completely fine – HMRC has issue when you look like an employee operating as a limited company!
What HMRC are looking for when it comes to IR35 mostly comes down to your contracts. Have a read of what to keep an eye out for:
- When looking at your contract, make sure you look like a 3rd party provider
- Your name shouldn’t be on any contracts. Never allow it, or it’ll open you up to IR35 issues
- Don’t have anything that relates to you as an individual
- No mention of sick days, holidays, time off, time sheets (or anything that would be in an employment contract)
- You want to make it clear that you don’t have a supervisor/someone you report to
- Nothing that requires the client to keep you on indefinitely
- It’s better to have shorter contracts with your clients or master T+Cs with statements of work
- If you’re operating as a limited company and have 1 client, this could be an issue. Show you’re making an effort to work with more people
If you still aren’t sure whether it applies to you or not, hop on one of our free legal advice calls and we’ll chat you through it
