IR35 STATUS REVIEW

In order to take dividends you need to be sure that you are self-employed for tax purposes.

We offer reviews to limited company clients as part of our service. All you need to do is send us a copy of your contract. Remember that your IR35 status is dependent on both the terms of your contract and your working practices. Possible outcomes following an IR35 review are:

1. Taxed as self-employed - Our opinion is that your contract and working practices are consistent with being an independent contractor. If you change assignment or your working practices or receive a new contract or extension you would need another IR35 Assessment.

2. Changes necessary - This is where in our opinion your contract has too many aspects consistent with a contract of employment. We are able to suggest ways to improve your IR35 Status and consider aspects such mutuality of obligation, control & direction, opportunity to profit from sound management, the degree of continuity in the relationship, exclusivity of service, personal service / substitution, provision of equipment, part & parcel etc.

With the changes we would recommend you would be in a better position to defend taking a dividend if challenged by HMRC.

3. Taxed through PAYE - You will still be able to work through your limited company and receive some of the benefits of a limited company, however your income from this assignment should be taxed through PAYE. You will get the benefit of a 5% deduction and travel expenses.

We recommend a review at the beginning of each assignment & every 6 months thereafter.

Contractor Pages ► Contractors & Freelancers ■ IR35 & Personal Service Companies ■ IR35 Advice ■

■ IR35 Employment Status ■ Advantage of Separate Contracts for Each Project ■ IR35 Case Law ■

■ Engaging as Employee or Contractor ■ IR35 Status Review ■ Contractor Expenses Guide ■

Registered office: 61 Friar Gate, Derby, Derbyshire, DE1 1DJ   T: 01332 202660

Adrian Mooy & Co is the trading name of Adrian Mooy & Co Ltd.  Registered in England No. 05770414

Registered as auditors in the United Kingdom by the Association of Chartered Certified Accountants auditregister.org.uk 8011438