General IR35

Yes. Working through your PSC when captured prevents you from claiming travel and related subsistence costs.

Yes. You can work through your limited company (PSC) or under an umbrella company. You may wish to seek guidance as to which will be the best solution for you.

IR35 status assessments are required every time you engage with a new contract or make a change to your contract. But we recommend undertaking an independent IR35 status assessment through Brookson Legal if you disagree with your end hirers process and outcome.

IR35 legislation states that an end hirer must take ‘reasonable care’ in assessing all contracts, to establish whether the individual would be seen an employee when carrying out the necessary work. If they fail to take reasonable care, the end hirer will be responsible for calculating the deemed direct payment, paying it over and reporting the tax and NICs that result.

CEST is an online tool HMRC have created to help companies establish whether or not a particular contract falls within IR35.

No. The changes to IR35 legislation in effect from April 2021 affect who is responsible for assessments, not the way they are assessed.

When IR35 was introduced in 2000, it was the contractor’s responsibility to determine their IR35 status. This was changed in 2017, when end hirers in the Public Sector became responsible for assessing a contractors IR35 status instead.

There is lots of established IR35 case law, much of which specifically looks at whether an individual was a ‘disguised employee’ or not.

If you strongly disagree with your end hirers assessment of your IR35 status, one of our Business Advisory Team will request an IR35 review from the Brookson Legal team to help you challenge the decision.

From April 2021, it is the end hirers responsibility to assess IR35 status on behalf of you, the contractor. So even if you are a director of your own limited company, you no longer have that responsibility moving forward.