The purpose of an IR35 Contract Review is to determine whether a contract is subject to IR35 regulations. In the UK, IR35 legislation prevents individuals from avoiding tax and National Insurance contributions through limited companies.
There are two terms that are frequently used to describe the status of an individual working for your company: if they are labelled as ‘inside IR35,’ they are deemed to be your employee and are liable to PAYE; if they are defined as ‘outside IR35,’ they are classified as a genuine business that works outside of IR35 regulations.
If you do not ensure there is an IR35-compliant contract in place, your business and contractor may both be in breach of tax legislation and could be subjected to a fine for unpaid taxes.
Our IR35 contract review services at AGS Accountancy can help you ensure your IR35 contracts are compliant, and that all company working practices are detailed in the terms and conditions of the contract.