|
The foundations of IR35
lie in the notion that an individual is an employee
disguised as self employed by using a Personal Service
Company. Both in Tax and National Insurance legislation,
there is an important exemption, which can release the
worker from all the complicated requirements of IR35.
This exemption comes in the form of self-employment. If
the relationship between the worker and the company he
or she is providing his service for (the client) is such
that in the absence of the personal Service Company, the
worker would be regarded as self employed then he or she
falls outside the IR35 regulation.
The starting point in any defense against IR35 is to put
in place all the evidence necessary to ensure
classification as a self employed individual as opposed
to an individual in employment. The Inland Revenue
accepts this point and has published a series of
booklets to help those concerned to decide which side of
the fence they fall into. If you are IR35 exempt and you
do nothing about it, you will end up paying more tax
than you are required to under the law. If you are not
IR35 exempt and you do nothing about it, you pay fines,
penalties and more tax than you would have paid
otherwise. Whichever side of the fence you fall into,
talk to Alexander Ene - we can protect you from the
perils of IR35. |
