A contractor’s IR35 status effectively determines their tax position with HMRC. It is assessed by the hirer completing an SDS on the contractor’s behalf.

IR35 investigations have historically been triggered directly by HMRC campaigns into specific sectors.

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.

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

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.

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.

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