Contractors 'should seek advice' on IR35

Posted on 18 June 2008

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Hiring a professional to offer advice on IR35 liabilities is a better option than risking a tax investigation, it has been reported.

Contractors should clarify whether they qualify for IR35 prior to commencing each working role, reports Contractor UK.

Martin Hesketh of accountancy firm Brookson says it is all too easy for contractors to "take the risk" where their employment status is concerned.

He states: "Despite the huge legislative shifts the contracting industry has experienced in recent times, the IR35 legislation remains key for self employed contractors in determining employment status."

"With this in mind, we would urge all contractors to ensure they have obtained robust and documented professional advice for each of their assignments."

Under IR35 legislation, contractors can receive tax benefits if they can prove they are self-employed according to the HM Customs and Revenue definition.

If the relationship between the worker and the client would have been one of employment had it not been for an intermediary, income tax and national insurance contributions are payable on a basis which is "fair in relation to what an employee of the client would pay".

Category: IR35

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