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TERMS OF YOUR CONTRACT

TERMS OF YOUR CONTRACT

IR35 STATUS REVIEW

Contractors and IR35

IR35

IR35

YOUR WORKING PRACTICES

YOUR WORKING PRACTICES

OUR

PROCESS

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WITH US

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US

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.

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

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

Registered to carry out audit work by the Association of Chartered Certified Accountants - auditregister.org.uk 8011438

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Member of the Association of Chartered Certified Accountants
Phone

01332 202660

61 Friar Gate - Derby - DE1 1DJ

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