IR35 Advice

IR35 is a challenging piece of legislation for contractors and employers alike, and at some point it’s likely you’ll need to seek IR35 advice. Our IR35 advisors are all chartered accountants with plenty of experience in providing sound advice about IR35.

Warr & Co we have an understanding of what falls inside and outside the scope of IR35, let us advise of the way forward and what action you need to take to ensure you comply with the government’s regulations in this area.

If you’re looking for help with IR35, contact us now for a free initial, no-obligation consultation so that we can discuss your IR35 status.

Recent IR35 Changes

The rules designed to tackle the issue of “disguised employment” among contractors have changed dramatically since its first introduction in April 2000. In April 2017 and April 2021, new IR35 legislation – IR35 Reform – was introduced to help prevent those contractors working in the public (2017) and private (2021) sectors who would, but for their use of a PSC be employees in terms of benefiting from paying corporate rather than employed tax rates.

In September 2022 the Government announced that while IR35 will remain in-place, IR35 Reform will be repealed from April 2023 onwards. This means the IR35 status determination responsibility will return to the individual contractor, and no longer be the responsibility of the engaging company.

Determining Your IR35 Status

From April 2023, contractors will once again be able to determine their own IR35 status, since IR35 Reform was repealed in the 2022 Mini-Budget. Most contractors will prefer to work outside IR35, not just to benefit from the tax rates available to businesses, but also to ensure they don’t lose out on money which needs to go towards their pension or the running of their PSC.  However, if you find that your contract has you receiving any employee-style benefits or following employee-style rules of the engaging company, you must make an honest determination and declaration of your IR35 status. Reform being repealed isn’t grounds to not comply with IR35 as it can and most definitely will still be enforced.

The following points can help you to determine whether your contract is inside or outside IR35, but if you have any concerns you should speak to your accountant who will have extensive experience of IR35 legisation.

Inside IR35 Outside IR35
Are you paid on the basis of time spent? No Yes
Are you given set hours to work? Yes No
Are you allowed to supply a substitute to do your work if ill or on holiday? No Yes
Do you attend staff parties or meetings? Yes No
Is the engaging company telling you how to carry out the work? Yes No
Do you supply your own equipment? No Yes

The Latest IR35 News

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Are PCSs A Thing Of The Past?

Unfortunately, many large companies have decided to bypass IR35 altogether. They do this by refusing to engage with PSC’s and insisting that contractors provide their services on a PAYE basis often through an umbrella company.

Your accountant at Warr & Co will be happy to help check the contract that you have with the engaging company, and advise on any factors that could bring you within the scope of IR35.

Contact Us For IR35 Advice Now