IR35 Checklist

If you believe you are impacted by IR35 call Lewis Smith & Co. today on 01384 235549. We help many contractors solve their IR35 issues.

The following is a non-exhaustive checklist of some of the factors the Inland Revenue would use in assessing whether income from a particular contract is subject to the IR35 rules:

Badges of TradeIndicative of Self EmploymentIndicative of Employment
BASIS OF REMUNERATIONRemunerated on a project basis, or at a fixed price.Remunerated on a time basis. Paid holidays, sick pay etc.
RIGHT OF CONTROLYou have the right to decide how, when and by whom a job is done. Can send substitute to do job.Close directional supervision by your client (master – servant relationship). Client can dismiss you.
TOOLS OF TRADEYou supply large or expensive equipment, and may work from your own premises.Provision of only small or no equipment. Work at client’s premises
TRADING STRUCTURETrade with more than one client at a time, or work on short successive assignments with different clients.Long term assignments with the same client.
FINANCIAL RISKA loss can be suffered. All rejected work to be corrected at your own cost. Penalty clauses. A larger profit can be made from sound management.No financial exposure. All rejected work to be corrected at your client’s cost.
BUSINESS ORGANISATIONOwn premises, letterheads, other employees, insurance etc. Quoting for jobs in advance. AdvertisingNone.
TERMS OF ENGAGEMENTContracts or understandings which record the above.Contracts or understandings which do not record the above beneficial badges of trade, or no contracts at all.

Lewis Smith & Co. provide accountancy services to a wide variety of contract based workers including architects, builders and IT professionals. If you are unsure of your position regarding a contract then feel free to call Andrew Smith or Craig Beale on 01384 235549 or email and we will do our best to help.

Latest news – IR35 investigations on the rise