IR35 and Limited Company Contractors
Does IR35 apply to all contractors?
IR35 legislation does not apply universally to all contractors, but applies to those who provide their services through an intermediary. Whether a contractor falls under the purview of the legislation hinges on whether the engagement is considered employment, which is also known as "Inside IR35". Therefore, it is necessary to carefully evaluate the nature of the contractor's engagement to determine if the IR35 rules are applicable.
More detail
To assess the employment status of a contractor, or to find out if IR35 applies, you would need to consider a range of factors that determine whether the engagement is inside or outside the scope of IR35.
These factors include but are not limited to the contractor's level of control over their work, the degree of supervision they receive, the provision of equipment and materials, and the level of financial risk they bear. It would also be necessary to consider the contractual terms and conditions, as well as the working arrangements, to determine whether they reflect the reality of the relationship between the contractor and their client.
Whilst assessing status can appear complicated, Status Determination Statements are now automated and can be done quickly and easily.
Further information for contractors is available:
https://www.ir35shield.co.uk/articles/article/12-key-points-for-contractors-and-off-payroll-ir35
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