For Contractors
What is IR35?
If you currently work as a contractor, or are considering becoming a contractor, IR35 is something that you should be familiar with. Self-employed contractors working through a limited company can benefit from tax advantages, but you must comply with IR35 rules in order to do so lawfully.
What do the changes mean?
When IR35 came in to force, each contractor was responsible for assessing their own IR35 status. This meant examining key elements of the contract and working relationship such as: supervision & control, mutuality of obligation and personal service (the right to substitution) and determining the contract assignment to be one of employment (inside IR35) or genuine self-employment (outside IR35).
As of April 2021, it will be the hiring company, not the contractor, that makes this status determination.
How can Adepto help?
Adepto Technical Recruitment is proud to have partnered with Kingsbridge Contractor Insurance to provide an award winning 360° solution that manages the status assessment of a contractor. Our bespoke online portal provides a fully compliant status report that determines whether you are ‘Inside’ or ‘Outside’ of IR35.
Inside or Outside?
As part of our IR35 product we are able to fully insure against each ‘outside’ status determination for tax liability that covers all 3 parties in the chain including the contractor, agency, and client. This gives all parties in the chain full peace of mind.
What does inside IR35 mean?
If you are deemed to be operating ‘inside IR35’, then under the legislation, you should pay the same tax and NIC contributions as an employee.
These contributions are managed at source by the ‘fee payer’ (the organisation that pays you – usually a recruitment agency).
What does outside IR35 mean?
If you are deemed to be operating ‘outside of IR35’ then your tax affairs remain your own to manage and you can pursue a more traditional self-employed salary and dividend model.
IR35 is a complex piece of legislation, however by fully familiarising yourself with the information available, you can take the relevant actions to comply with the IR35 rules. Our Directors are experts in the legislation and have been helping contractors with compliance in this area ever since it was first introduced in 1999-2000
Have a question about IR35 or our solution? Get in touch with a member of our specialist team below.