Contractors

IR35 is a specialist topic which requires experience and an understanding of employment case law to truly understand and assess. If you're engagement with a client is "inside IR35" then your personal service company will need to make a payment equivalent (after expenses) to the income tax and national insurance due if you were an employee of your client.

Getting an expert review of the contracts you have with your clients is essential to avoid what can be a large unexpected tax bill. We provide a written report highlighting areas of concern and explain why the contract does or does not meet the legislative requirements. You can then make an informed decision about what to do.

If you're currently working via an umbrella company, but thinking about switching to a personal service company we can help you make an informed decision.

Making the switch means you have a greater level of control over your business and its financial affairs - as well as advantages in how your income is taxed. But does also introduce additional statutory and financial obligations such as submitting annual accounts to Companies House and Corporation Tax Returns to HMRC.

After you've weighed everything up, if you think its worth switching we'll help set everything up and take care of your ongoing accounting and tax obligations.

HMRC is carrying out more tax enquiries and compliance checks than ever before - especially in the Contractor sector. If this happens to you, you will need to prove that HMRC's suspicions are unfounded. You'll have to defend probing questions about your employment status (or other issues) and enquiries can drag on for several months. Without tax investigation cover, professional fees can come to several thousands of pounds.

We don't want you to have to worry about this, so in the event of an HMRC enquiry or inspection:

• We represent your case with HMRC, saving you the hassle, without any additional cost to you.
• If the case is complex, in particular because of challenges to your employment status, we have free access to specialist tax advisers so that you have the best possible defense.
• If matters progress further, you won't be charged for most professional costs in defending you.

The amount of tax involved in a dispute around your employment status can be very material. This service ensures that you'll never have to concede to HMRC's demands because of financial pressures around the cost of defending yourself.