Since the now infamous pre-Budget announcement on 9th March 1999, Inland Revenue press release number 35 has caused much concern and problems for those workers who trade through a personal service company, particularly contractors in the IT.

Typically, an annual tax saving of £12,000 can be secured if your affairs can be structured to fall outside of IR35 (or off-payroll working rules). This arises through drawing profits from your personal service company in the most tax efficient remuneration manner (small salary + balance as dividends), rather than the high salary structure required if ‘caught’ by IR35.

All such businesses must assess their current risk exposure (via example IR35 checklist) and decide which of the following options is most relevant to them:

IR35 Contract Review

One of our more popular services involves us reviewing your current work practices and written contract and providing an opinion on how we believe HM Revenue & Customs would categorise you. We will prepare a detailed report on the positive, neutral and negative aspects of your current arrangements and make practical suggestions on improvements you may wish to consider, if commercially acceptable to both you and the client.