IR35 Contract Review

Why do you need an IR35 Contract Review after the off-payroll reforms?

– The client has notified you that it is within the small companies exemption – the old IR35 legislation continues to apply so you’re responsible for getting legal advice;

– The contract contains an indemnity clause requiring your company to compensate the employment business and client for any tax loss so the IR35 legislation effectively applies to your engagement;

– The client has no connection with the United Kingdom, e.g., it is based in the Channel Islands, United States, etc., and does not not have an office or employees in the United Kingdom;

– The contract contains potentially onerous clauses such as unlimited liability for damages.

Our IR35 Contract Review will provide a comprehensive review of the contract terms and the true working practices concluding with a plain English legal opinion as to whether the engagement is caught by the IR35 legislation or not. The IR35 Review will provide a fully reasoned opinion based on the actual working practices, not a generic summary, a simple list of missing clauses or a grossly misleading statement on substitution.

Often contracts are often described to limited company contractors as ‘IR35 compliant’. In our view this is nonsense; the contract terms must precisely mirror the actual working practices and you can only ascertain whether your engagement is outside the scope of the IR35 legislation by seeking a full IR35 Contract Review at the earliest opportunity.

If the engagement is outside IR35 you can proceed with your engagement with peace of mind knowing that in the event of a HM Revenue & Customs enquiry the IR35 Contract Review will form the basis of your defence.

HM Revenue & Customs requires tax payers to take ‘reasonable care’ in respect of their tax liabilities. This can only be achieved by promptly obtaining legal advice. As we are not accountants or providers of insurance products our advice is fully confidential. Is it reasonable to ask an accountant or insurer to advise on matters outside the scope of their professional training? Using CEST does not discharge the duty to take reasonable care as it cannot have regard to the terms on which the services are provided as strictly required by the IR35 legislation. If an insurer says that you can use their tool instead of getting competent professional advice, be ready to pay 30% penalties to HM Revenue & Customs if the engagement is found to be inside IR35.

If we advise that the engagement is caught by IR35 we can redraft the contract to reflect the actual working practices and negotiate with the agency or client on your behalf. If the outcome is successful we can provide a revised opinion.

Have you been referred by an affiliate (not including the IPSE) such as our selected list of accountants? If so, we can offer a discount.

Find out more about out IR35 contract reviews here.

Combined IR35 and Commercial Terms Review

In addition to a full review of your contract and working practices from an IR35 perspective the Combined IR35 and Commercial Terms Review will give you guidance on your commercial risks such as intellectual property, payment, restriction clauses and termination.

The process is the same as the IR35 Contract Review and the charge is a competitive £175.

Do you need more than one IR35 Contract Review? If so, we can offer a discount…

Further information on our combined IR35 & commercial terms reviews:

The Law Place specialise in UK IR35 tax issues, and provide professional advice and information on the rules and regulations. With a fast turnaround and low fee structure The Law Place offer great value and a quality service.