If you are a contractor you will be aware of changes introduced recently to the IR35 legislation. Being caught by IR35 can mean a lot of extra tax to pay, so it is well worth being on top of what are increasingly complex regulations.
One of the key tests for checking whether IR35 applies to your company is to review whether you are providing ‘personal services’ i.e. whether you as the company shareholder/ director are offering your own personal services, albeit through an intermediary like an employment agency, or not. A question to ask is whether there is scope to substitute someone else on your behalf, either within the terms of contract or in practice? Having a genuine right of substitution is the most straightforward way to demonstrate that you are not an employee and so not caught by IR35. (more…)