The key is to determine if a contractor has a contract of service (and is employed) or a contract for service (and is a self-employed independent contractor) when working for a given client.
- If it is determined that the contractor has a contract of service and is employed on a given contract with a client, then IR35 applies and tax and National Insurance liabilities should be the same as if the contractor was directly employed by the client.
- If the contractor is deemed to have a contract for service, they are considered a genuine self-employed independent contractor or service supplier, IR35 does not apply and the contractor can enjoy certain tax advantages.
In order to determine whether or not the contractor is employed during the course of a given contract a range of questions are asked about the status of the contractor.
To speak to one of our tax experts call 0800 434 6402.
