Many Limited company contractors may find themselves working in the Public Sector for organisations such as NHS Trusts, the Treasury, the Department of Work and Pensions or even a local council.
In August 2013 the ‘Review of Tax Arrangements of Public Sector Appointees’ was introduced which has mean’t many contractors have been asked to show how they are meeting their tax obligations.
In a nutshell this means some contractors taking up a position in the public sector where their contract exceed 6 months and they are working through a Limited company, may be asked to provide details of their IR35 status, this is most easily achieved via a simple IR35 contract review.
The IR35 review will determine if your contract falls in or outside of IR35 legislation. If your contract does fall within IR35 you are expected to provide a deemed calculation. Don’t worry, a good accountant will be able to explain how the calculation works and will also do the calculation for you. Though for more information you could visit the HM Revenue and Customs page on IR35 deemed payment.
Additionally, you could be asked to show proof that you are paying PAYE and NIC if you do fall within IR35. This can be done through simply photocopying your payslips.
The above requirements really aren’t complicated if you go to an IR35 specialist. Our written contract review is unique as not only do we offer a guaranteed next day reply, though in 95% of cases it is the same say, we only charge for the review if we feel it passes IR35. The review will tell you in detail why we think your contract has passed or why we think it has failed. If your contract has failed we will offer constructive advice as to how you may restructure your assignment and contract.