Freelancers, contractors and consultants working via their own limited companies have been urged to take it upon themselves to check their IR35 status – in a move which could help ensure their clients set status correctly and in turn, compliantly boost their take home after tax by anything up to 30%.
The recommendation comes from IR35 compliance expert, Qdos, which has witnessed first-hand contractors safeguarding their IR35 status in recent months and in some cases, overturning incorrect IR35 status decisions made by their clients.
Following changes to the IR35 rules, businesses engaging freelancers and contractors are now responsible for setting IR35 status, which determines if a worker pays tax as a self-employed individual or should be classed as an employee for tax purposes.
Given the complexity of the IR35 legislation, which aims to prevent what’s known as ‘disguised employment’, it’s not uncommon for businesses to incorrectly...