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Does your contract fall inside or Outside of the forthcoming IR35 legislation changes?

Its not gone away, its just been Postponed

Remember when you had the legal responsibility to determine whether your contract was inside or outside of IR35.

Government changes announced last April (2017) initially applied only to public sector workers however these changes are set to be rolled out to private sector workers from April 2021, after which the onus of proof will be with either the end client or the recruitment agency.

Listed below are FIVE key areas HMRC look for to determine IR35 status

  • Substitution:    Can someone else cover your responsibilities.  Is there a clause in your contract to allow you to be substituted?

  • Control:             Are you free to work as you wish?  Can you choose your working hours, working location, even your dress code?​

  • Notice:               Have you Notice or can you terminate immediately? a notice period is like an employee/employer relationship.

  • Financial risk:  Personal financial risk as a result of your duties? Employees rarely risk financial loss by being employed

  • Benefits:            Company benefits are only shared with employees.  Attending the Christmas party will have HMRC interested.

This new legislation is coming, and with the emphasis on decision-making and associated liabilities, you need to be working in a true partnership with your recruitment partner/agencies.

Click on the below button and Test your current contract with the Governments CEST tool.

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