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IR35 is the common term for the Intermediaries Legislation which is a tax legislation used to combat a form of tax avoidance for example where individuals are providing services similar to an employee but through a personal service company (their own limited company or partnership).
Some of the criteria used to determine whether someone is ‘inside’ or ‘outside’ IR35 is common sense.
If you act like and are treated like an employee you should be taxed as one.
However, there are a lot of grey areas in the legislation and some points which may seem relatively insignificant can have a major impact.
Therefore it’s always best to consult an expert before making any decisions over your IR35 position.
InvitISE is able to help you scope out your contract requirements to see if they sit inside or outside IR35. We partner up with a firm who specialise in this field and are able to provide you with in depth advice regarding any IR35 queries you may have.
Its important for firms to take note of the legalisation changes from 6th April 2021 – we can help take away the stress of IR35. Please contact us for further information.
For contractors that fall inside IR35, InvitISE only work with compliant umbrella companies to help ensure that the risk is minimised giving you peace of mind.