How could Balanced Accounting help you?
Employment Status IR35
Employment status, contractors and IR35 advice
Employment status, contractors and IR35 advice
For relationships between businesses and contractors, the matter of whether contractors are employed or self-employed may not be quite as simple as it might initially seem.
The introduction of Construction Industry Scheme (CIS) tax deduction legislation has caused some to believe that the question of employment status is a new issue. Whilst certain considerations do apply specifically to CIS, core conditions governing employment status already lay firmly enshrined in UK law. As before, it remains crucial that this issue is addressed carefully at the outset of working relationships.
For contractors, we can review your circumstances, help you to set out a contract for providing your services and, with the benefit of our professional insight and experience, offer our opinion regarding whether we would expect you to be deemed as employed or self-employed by HM Revenue & Customs (HMRC).
Similarly, for employers, we can provide our opinions on contracts and whether we would expect contractors who are carrying out work on your behalf to be regarded as employed or self-employed.
Ultimately, the decision regarding how to treat any given contractor rests with the employer, who will be liable for costs including tax, penalties and interest in the event that HMRC disagrees with their categorisation. On top of this, the “employee” would also be entitled to employment rights and protection, including in respect of unfair dismissal, maternity leave, holiday pay and more.
For both employers and contractors, we can also help you negotiate with HMRC in the unfortunate event of an employment status-related dispute.
Basic factors for employers and contractors to consider when determining whether an individual is employed or self-employed include:
- Where control is vested;
- The right of substitution;
- The existence or degree of mutuality of obligations;
- Further factors that also have a bearing on a person’s employment status include:
- Responsibilities for providing necessary equipment;
- Where financial risks lie;
- Whether there is an opportunity to profit from sound management;
- Arrangements for termination of the working relationship;
- The nature and extent of any benefits provided;
- The underlying intentions of both parties;
- The duration of the engagement.
For more information and help in clarifying your own arrangements, whether as a contractor or an employer, please get in touch.
What some past and present clients have had to say
Hazel has the right balance of professionalism and approachability, coupled with first-rate accountancy expertise and advice. Queries are dealt with quickly and efficiently, and she is always on the end of the telephone to talk through any questions we may have. I can confidently recommend Hazel and Balanced Accounting to anyone looking for an accountancy firm that has your best interests at heart.Victoria Usher / GingerMay PR
Looking back at how Hazel has managed our accounts since 2010, it is hard to imagine how we managed before without her pro-active and unquestionably professional guidance. Whilst always coming across as friendly and approachable on a day-to-day basis, Hazel / Balanced Accounting provides efficient expertise and an invaluable service to our company.Graeme Hall / ifour
I found Hazel via her helpful replies on a UK business forum. I was specifically looking for a switched-on, friendly accountant who understood how an agile, modern online business operates. Her forum replies echoed the experience I have had since choosing Balanced Accounting - calm, knowledgeable, patient and fully in control. I have come to rely on Hazel completely and am very happy to do so. Highly recommended and a breath of fresh air!Kevin Browning / Blue Light Internet
Hazel has provided our companies with a superb service. We decided to use Balanced Accounting because of their ethical approach and have been delighted with what they have achieved for us and their very friendly and personal touch. As people new to the world of limited companies they have guided us every step of the way and made our accounting very easy to manage. We could not have asked for more.Crichton and Susan Casbon / Crichton Casbon Consulting and IgnitED
Hazel Wells at Balanced Accounting works for us as Company Secretary and accountant for our estate management company. Quite a complex set up in a small way, but the work has been done with speed, efficiency and, in some tricky situations, a good deal of diplomacy. As a small organisation the personal touch is very evident and very welcome.Anon / Prefers privacy