IR35 Checklist

[O.S.C.R.U.F.T.]

Howdy everyone!

I know how much you all love talking about IR35 and given the recent news regarding the Tories lack of support to abolish it, I thought I'd include a simple checklist of the main things to look out for. I have to say that I'M NOT AN EXPERT, so please be gentle, i'm only trying to help!

Right of control
SELF EMPLOYED - You have the right to decide how, when and by whom a job is done. Can send substitute to do job.
EMPLOYED - Close directional supervision by your client (master – servant relationship). Client can dismiss you.

Basis of remuneration
SELF EMPLOYED - Remunerated on a project basis, or at a fixed price.
EMPLOYED - Remunerated on a time basis. Paid holidays, sick pay etc.

Tools of trade
SELF EMPLOYED - You supply large or expensive equipment, and may work from your own premises.
EMPLOYED - Provision of only small or no equipment. Work at client’s premises

Trading structure
SELF EMPLOYED - Trade with more than one client at a time, or work on short successive assignments with different clients.
EMPLOYED - Long term assignments with the same client.

Financial risk
SELF EMPLOYED - A loss can be suffered. All rejected work to be corrected at your own cost. Penalty clauses. The opportunity exists to make a larger profit from sound management.
EMPLOYED - No financial exposure. All rejected work to be corrected at your client’s cost.

Business organisation
SELF EMPLOYED - Own premises, letterheads, other employees, insurance etc. Quoting for jobs in advance. Advertising
EMPLOYED - None.

Terms of engagement
SELF EMPLOYED - Contracts or understandings which record the above.
EMPLOYED - Contracts or understandings which do not record the above beneficial badges of trade, or no contracts at all.

Mutuality of obligations
SELF EMPLOYED - No obligation to offer and accept work over a period of time.
EMPLOYED - Mutual committment to offer and accept work over a period of time.

[CrazyMoose]

thanks. v helpful.

[Malvolio]

Firstly there is no indication the Tories won't abolish IR35 so far, so let's not keep spreading that rumour. They aren't saying anything about any tax changes yet, for obvious reasons.

Secondly if you want the definitive guide to IR35, have a read of this:

PCG's Guide to IR35

[hugo@gabem]

I wrote an article for an article site on this a little while back. If anyone's interested I can pm you a link to it.

[Bel]

Originally Posted by Malvolio

Firstly there is no indication the Tories won't abolish IR35 so far, so let's not keep spreading that rumour. They aren't saying anything about any tax changes yet, for obvious reasons.

Secondly if you want the definitive guide to IR35, have a read of this:

PCG's Guide to IR35

The link doesn't work, except for paying members.

[The SMG]

Originally Posted by Bel

The link doesn't work, except for paying members.

yep, i'm getting the same message. It would be good to have a look...

[Bel]

Originally Posted by The SMG

yep, i'm getting the same message. It would be good to have a look...

Have you considered joining the Qdos Freelance Club yet? You get great advice from them. It's a lot cheaper too, and you get three contract reviews included in the price.

[Malvolio]

Originally Posted by Bel

The link doesn't work, except for paying members.

Ah. Quite right, that's the wrong one. Try this one...

The PCG Guide to Freelancing

Of course, if you're a PCG member like you're supposed to be, you could see all the guides!

[Malvolio]

Originally Posted by Bel

Gave you considered joining the Qdos Freelance Club yet? You get great advice from them. It's a lot cheaper too, and you get three contract reviews included in the price.

It costs less money. It is not cheaper...

[Bel]

How about Qdos 'is very good value for money' and you don't need to join the PCG?

Clearly, you're here to promote the PCG - that's blatently obvious. But there are other options out there, and readers should be aware of these too.

I sure you realise that.