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;

– You have used CEST or an online tool provided by an accountant, insurer or contractor and require a proper legal opinion from one of the UK’s most experienced IR35 lawyers;

– 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 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 Contract 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.

Subject to an additional fee (outlined in the Review), 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.

The Review process:

1. Complete the order form;
2. Send a copy of your contract and any schedules (one contract per Review) to martyn@thelawplace.co.uk;
3. Complete the Questionnaire concerning the actual or anticipated working practices;
4. Your Review will arrive very shortly.