IR35 FAQ's

No. Even with the changes to IR35 assessment in the private sector in April 2021, HMRC have said that decisions about contractor status will not be made retrospectively.

If you are IR35 captured then you can continue to make pension contributions. However, the rules are different depending on...

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

No. If you are captured by IR35 there are number of options available to you, including working through your company or going on the payroll of the agency or the end hirer. You need to consider which of the options available best suits your circumstances.

No. There are many different options available to contractors captured by IR35 for their current contract. Depending on your circumstances, closing your limited company down may be a preferable option, but it is not essential.

No. The IR35 changes introduced in April 2021 oblige end hirers to take ‘reasonable care’ when assessing IR35 status. If reasonable care has not been taken when determining a contractors IR35 status, then the end hirer may incur fines with HMRC.

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.

Yes. All contractors are entitled to challenge an end hirers IR35 determination. To do this, they need to undertake an independent review and put forward additional supporting evidence.

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.