Contractors in the UK are aware of the looming IR35 risks they may face when choosing to contract to one end client.
SAIL offer our clients one free IR35 contract review a year but we urge you to watch out, IR35 is not only about your contract!
You should also pay close attention to your working practices to avoid IR35. According to Contractor Calculator.co.uk the end of July 2017 saw another company defeated in an employment tribunal regarding IR35, and it came down to working practices. You can read about the case here.
Some aspects of your working practices to look out for:
- Is there mutuality of obligation (the obligation of an employer to provide work and pay for it, together with the obligation of the employee to personally do the work)?
- Can your client demand that you are available for work?
- Is your work ‘designated’ & ‘supervised’ by a controller?
- Are you required as an individual to perform the work personally?
- Are you receiving the same benefits as the employees of the company?
If you answer yes to any or all of the above your IR35 risk potentially increases.
Martyn Valentine of employment status law specialists explains,
“If the contract doesn’t reflect the working practices, it merely becomes one of many factors used to determine employment status, rendering it far less important. It’s still relevant, but the working practices always take priority.”
This isn’t to say that the contract in itself is of no importance when considering IR35.
Contact one of our SAIL advisers today to discuss your IR35 status and have your contract reviewed.