IR35 is a major worry for many independent contractors, and there are a number of reasons why the employment legislation could be a cause for concern.
Some contractors may want to trade via a limited company but are concerned that they will fall foul of IR35. Others may already be trading via a limited company, but are not sure whether they are doing so within the law.
Crunch online accounting offers expert assistance whatever your situation. In a moment we’ll go into more detail…
But first off, I think we need a (very) brief explanation of what IR35 actually is. IR35 is the legislation that was brought in place to tackle the scenario whereby someone would provide work via their own limited company, but remain, in spirit, an employee.
The problem here is that this person would be crudely taking advantage of the tax benefits of running their own limited company by being a ‘disguised employee.’ Naturally, the government wanted to bring an end to the loss of taxes that this entailed; hence IR35.
For those wanting to form a limited company but are unsure about the consequences
Whenever someone approaches us about contracting via a limited company, our Crunch advisors will always establish whether or not your contracts are likely to fall under the wicked spell of IR35. They will ask a series of simple questions to ascertain exactly where you stand.
By establishing the nature of your business from the outset, our Crunch advisors will ensure that forming a limited company is the right option for you and that there won’t be any nasty surprises around the corner. The process is simple, quick and guaranteed to be jargon free.
For those who have more complex IR35 concerns…
Perhaps you’ve already got a limited company and your previous accountant has left all your accounts in a mess. As a result, your IR35 status may not be so easy to ascertain. That’s where our team of expert accountants come into play, led by ex-HMRC and IR35 tax specialist Steve Crouch.
Crunch offers two levels of service:
1) A basic check with a definitive yes/no answer.
2) Extensive check where you can see where you passed or failed compliance.
This is a swift way of achieving peace of mind, with a low pricing point starting from £39.50. However, most people won’t even need this – a quick, free chat with a Crunch advisor is usually all you need.
The truth is, although IR35 is a legitimate concern for a significant number of contractors, most people will have no worries at all. Contractors who do their accounting online with Crunch certainly don’t!