IR35 Contractor Tax Support in Kent

IR35 and the off-payroll working rules

IR35, also called the off-payroll working rules, applies where a contractor provides services through an intermediary, usually their own limited company, to a client in a way that would make them an employee if the company were not there. When the rules apply, income from that contract is taxed broadly like employment income, with PAYE and National Insurance.

Who decides whether the rules apply depends on the client:

• Public sector clients, and medium or large private sector clients, are responsible for deciding the worker's status. They must give a status determination statement (SDS) with the reasons for their decision. If the rules apply, the fee-payer deducts tax and National Insurance before paying your company.
• Small private sector clients do not make the decision. Instead your own company is responsible for deciding whether the rules apply and, if they do, for calculating and paying the tax through a deemed employment payment.

Whether a client counts as small is based on company size tests, and those thresholds have changed in recent years, so it is worth checking with each client. HMRC's guide to understanding off-payroll working explains the framework.

How we help contractors

• Understanding your position. We explain which regime applies to each contract and what an SDS means in practice.
• Financial implications. We show the likely difference in take-home pay for inside and outside IR35 engagements, and what happens to your company's income, expenses and dividends.
• Inside IR35 income. We make sure income already taxed through the fee-payer is recorded correctly in your company accounts and not taxed twice.
• Small client contracts. Where your company must make its own assessment, we help you document the review and, if the rules apply, run the deemed payment calculation through payroll.
• Year-end and personal tax. Company Corporation Tax returns, director's self assessment and sensible dividend planning for outside IR35 income.

What we do not do

Status depends on contract terms and the real working practices, including control, substitution and mutuality of obligation. We do not give legal opinions on contracts. If you need a formal contract review or want to challenge a client's determination, we may suggest a specialist contract reviewer or employment status adviser, and we can then work with their conclusions on the tax side.

What we'll need

Copies of your contracts and any status determination statements, remittance advices showing deductions, your company's bank records, and a description of how you actually work on each engagement.

Contractors across Kent

Many Kent contractors commute into London or work remotely for clients across the UK, often moving between inside and outside IR35 roles. We help them keep their company affairs in order whatever the status of each contract. Send us a message with details of your current engagement.