IR35 FAQs
Straightforward Answers for Contractors
IR35 can feel complicated. We make the accounting side easier to understand.
At Fletcher & Gill Accountants, we work with contractors and limited companies and understand the practical questions that come with working inside or outside IR35.
Whether you are taking your first outside IR35 contract, already running an established limited company or moving between different types of engagement, we’re here to help.
Have an IR35 question? Talk to Fletcher & Gill.
IR35 can feel complicated. We make the accounting side easier to understand.
At Fletcher & Gill Accountants, we work with contractors and limited companies and understand the practical questions that come with working inside or outside IR35.
Whether you are taking your first outside IR35 contract, already running an established limited company or moving between different types of engagement, we’re here to help.
Have an IR35 question? Talk to Fletcher & Gill.
Fletcher & Gill Accountant IR35
Book a FREE 30-minute call to discuss your situation
Phone
07596355888
EMail
info@FletcherGill.co.uk
Monday – Sunday
8AM to 8PM
Understanding IR35
Phone
07596355888
Email
info@FletcherGill.co.uk
What is IR35?
IR35 is the commonly used name for the UK’s off-payroll working rules.
The rules consider whether someone providing services through an intermediary, such as their own limited company, would have been regarded as an employee for tax purposes if they had worked directly for the client.
IR35 is considered separately for each engagement.
The rules consider whether someone providing services through an intermediary, such as their own limited company, would have been regarded as an employee for tax purposes if they had worked directly for the client.
IR35 is considered separately for each engagement.
What does outside IR35 mean?
An engagement is commonly described as outside IR35 when the off-payroll working rules do not apply to that engagement.
If you operate through your own limited company, your company can generally receive the contract income and deal with its tax obligations in the normal way.
Working outside IR35? We can look after the accounting side of your limited company.
If you operate through your own limited company, your company can generally receive the contract income and deal with its tax obligations in the normal way.
Working outside IR35? We can look after the accounting side of your limited company.
What does inside IR35 mean?
An engagement is commonly described as inside IR35 when the off-payroll working rules apply.
Where the rules apply, the relevant payment is generally subject to Income Tax and National Insurance before it reaches the contractor or their intermediary.
Being inside IR35 for one contract does not automatically mean all your other contracts are inside IR35.
Where the rules apply, the relevant payment is generally subject to Income Tax and National Insurance before it reaches the contractor or their intermediary.
Being inside IR35 for one contract does not automatically mean all your other contracts are inside IR35.
Who decides whether I am inside or outside IR35?
It depends on your client.
For most public-sector organisations and medium or large private-sector clients, the client is responsible for determining your employment status for tax.
If you provide services to a small private-sector client, responsibility generally remains with your intermediary, usually your limited company.
For most public-sector organisations and medium or large private-sector clients, the client is responsible for determining your employment status for tax.
If you provide services to a small private-sector client, responsibility generally remains with your intermediary, usually your limited company.
Is IR35 decided contract by contract?
Yes.
Each engagement needs to be considered separately.
This means you could have one contract that falls outside IR35 and another that falls inside IR35 at the same time.
Each engagement needs to be considered separately.
This means you could have one contract that falls outside IR35 and another that falls inside IR35 at the same time.
Outside IR35
Can I use my limited company for an outside IR35 contract?
Yes, where the engagement is genuinely outside the off-payroll working rules, contractors commonly provide their services through their own limited company or Personal Service Company.
Your company then has its own accounting and tax responsibilities.
That is where having an accountant who understands contractors can make life considerably easier.
Yes, where the engagement is genuinely outside the off-payroll working rules, contractors commonly provide their services through their own limited company or Personal Service Company.
Your company then has its own accounting and tax responsibilities.
That is where having an accountant who understands contractors can make life considerably easier.
Book a FREE 30-minute call to discuss your situation
Can I have more than one outside IR35 contract?
Yes.
There is nothing preventing a contractor from having multiple engagements that are outside IR35, provided each engagement is considered on its own circumstances.
Having several clients may form part of the wider picture of how you operate your business, but it does not automatically determine your IR35 status.
There is nothing preventing a contractor from having multiple engagements that are outside IR35, provided each engagement is considered on its own circumstances.
Having several clients may form part of the wider picture of how you operate your business, but it does not automatically determine your IR35 status.
Can I have inside and outside IR35 contracts at the same time?
Yes.
Because IR35 is assessed on an engagement-by-engagement basis, it is possible to have both inside and outside IR35 work.
This can make your overall tax and company accounting more complicated.
If you have a mixture of inside and outside IR35 income, we can help you make sense of the accounting.
Phone
07596355888
Email
info@FletcherGill.co.uk
How should I pay myself when working outside IR35?
Contractors operating through limited companies may take money from the company using salary, dividends or a combination of the two, depending on their circumstances and the profits available.
There is no single approach that is right for every contractor.
At Fletcher & Gill, we can help you understand an appropriate way to take money from your company based on your individual circumstances.
There is no single approach that is right for every contractor.
At Fletcher & Gill, we can help you understand an appropriate way to take money from your company based on your individual circumstances.
What expenses can I claim outside IR35?
Your limited company may be able to claim genuine business expenses where the relevant tax rules are met.
Contractors commonly ask us about expenses such as:
• Professional subscriptions
• Business insurance
• Equipment
• Software
• Telephone costs
• Training
• Travel and accommodation
• Working from home
Not every expense is allowable in every situation, so it is worth checking before putting something through the company.
Contractors commonly ask us about expenses such as:
• Professional subscriptions
• Business insurance
• Equipment
• Software
• Telephone costs
• Training
• Travel and accommodation
• Working from home
Not every expense is allowable in every situation, so it is worth checking before putting something through the company.
Fletcher & Gill Accountant
Book a FREE 30-minute call to discuss your situation
Phone
07596355888
EMail
info@FletcherGill.co.uk
Monday – Sunday
8AM to 8PM
Do I need to register for VAT?
That depends on your company’s taxable turnover and circumstances.
Some contractor companies are required to register for VAT, while others may choose to register voluntarily.
Fletcher & Gill can help you determine whether VAT registration is appropriate and manage your VAT returns where required.
Some contractor companies are required to register for VAT, while others may choose to register voluntarily.
Fletcher & Gill can help you determine whether VAT registration is appropriate and manage your VAT returns where required.
Phone
07596355888
Email
info@FletcherGill.co.uk
Contracts & IR35 Status
Is having an “outside IR35 contract” enough?
No.
The wording of the contract is important, but IR35 status also depends on what happens in practice.
The real working relationship between you and the client should reflect the contractual arrangement.
Simply putting “outside IR35” into a contract does not by itself determine the tax status of the engagement.
No.
The wording of the contract is important, but IR35 status also depends on what happens in practice.
The real working relationship between you and the client should reflect the contractual arrangement.
Simply putting “outside IR35” into a contract does not by itself determine the tax status of the engagement.
What working practices can affect IR35?
Employment-status assessments look at the overall relationship between the contractor and client.
Factors can include areas such as:
• Control over how the work is carried out
• Whether personal service is required
• Substitution
• Financial risk
• How the contractor operates within the client’s organisation
• The terms of the engagement
• What actually happens day to day
No single factor necessarily determines the answer on its own.
Factors can include areas such as:
• Control over how the work is carried out
• Whether personal service is required
• Substitution
• Financial risk
• How the contractor operates within the client’s organisation
• The terms of the engagement
• What actually happens day to day
No single factor necessarily determines the answer on its own.
What is a Status Determination Statement?
A Status Determination Statement, usually called an SDS, is issued by a client where that client is responsible for deciding the contractor’s employment status for tax.
It should state the client’s decision and explain the reasons behind it.
An SDS can conclude that an engagement is either inside or outside the off-payroll working rules.
It should state the client’s decision and explain the reasons behind it.
An SDS can conclude that an engagement is either inside or outside the off-payroll working rules.
Phone
07596355888
Email
info@FletcherGill.co.uk
What if I disagree with my IR35 determination?
If your client is responsible for the determination and you believe it is incorrect, you can raise a disagreement with them.
The client must have a process for considering disagreements and should respond to the points raised.
Where necessary, specialist employment-status or legal advice may also be appropriate.
The client must have a process for considering disagreements and should respond to the points raised.
Where necessary, specialist employment-status or legal advice may also be appropriate.
Does Fletcher & Gill decide whether my contract is inside or outside IR35?
Our role is to help you understand the accounting and tax consequences of your IR35 position and ensure your company is managed appropriately.
Where a formal employment-status or legal assessment is required, we can make it clear when specialist advice should be considered.
We believe it is important to give contractors practical guidance without pretending that every IR35 question has a simple yes-or-no answer.
Where a formal employment-status or legal assessment is required, we can make it clear when specialist advice should be considered.
We believe it is important to give contractors practical guidance without pretending that every IR35 question has a simple yes-or-no answer.
Fletcher & Gill Accountant IR35
Book a FREE 30-minute call to discuss your situation
Phone
07596355888
EMail
info@FletcherGill.co.uk
Monday – Sunday
8AM to 8PM
Moving Between Inside & Outside IR35
I’m leaving an umbrella company for an outside IR35 contract. Can you help?
Yes.
We can help you with the accounting side of moving to your own limited company, including:
• Company accounting
• Corporation Tax
• Payroll
• VAT where applicable
• Bookkeeping
• Salary and dividend planning
• Self Assessment
New to outside IR35? We can help you get the accounting set up properly from the start.
Yes.
We can help you with the accounting side of moving to your own limited company, including:
• Company accounting
• Corporation Tax
• Payroll
• VAT where applicable
• Bookkeeping
• Salary and dividend planning
• Self Assessment
New to outside IR35? We can help you get the accounting set up properly from the start.
What happens if I move from outside IR35 to inside IR35?
Your limited company does not automatically have to close because your next engagement is inside IR35.
What you do with the company depends on factors such as whether you expect to use it again, whether it has retained profits and what ongoing costs it has.
Talk to us before making major withdrawals or closing the company so that the accounting and tax consequences can be considered properly.
What you do with the company depends on factors such as whether you expect to use it again, whether it has retained profits and what ongoing costs it has.
Talk to us before making major withdrawals or closing the company so that the accounting and tax consequences can be considered properly.
Phone
07596355888
Email
info@FletcherGill.co.uk
Can I return to my limited company after working inside IR35?
Potentially, yes.
If you later take a new engagement that is outside IR35, you may be able to provide your services through your limited company again.
Each new engagement should be considered separately for IR35 purposes.
If you later take a new engagement that is outside IR35, you may be able to provide your services through your limited company again.
Each new engagement should be considered separately for IR35 purposes.
Contractor Accounting
Do I need an accountant who understands IR35?
You do not legally need an accountant simply because you work outside IR35.
However, contractors can have accounting issues that are different from those faced by a typical small business.
You may:
• Move regularly between clients
• Work through agencies
• Have periods between contracts
• Move between umbrella and limited-company arrangements
• Have both inside and outside IR35 income
• Take salary and dividends from your company
Working with an accountant who already understands those situations can make the process much easier.
However, contractors can have accounting issues that are different from those faced by a typical small business.
You may:
• Move regularly between clients
• Work through agencies
• Have periods between contracts
• Move between umbrella and limited-company arrangements
• Have both inside and outside IR35 income
• Take salary and dividends from your company
Working with an accountant who already understands those situations can make the process much easier.
What can Fletcher & Gill do for an outside IR35 contractor?
We can look after the wider accounting and tax requirements of your limited company, including:
• Annual company accounts
• Corporation Tax
• Payroll
• VAT
• Bookkeeping
• Salary and dividend planning
• Self Assessment
• Contractor expenses
• General tax planning
• Ongoing accounting support
Most importantly, you don’t have to explain the contractor world to us before we can start helping you.
• Annual company accounts
• Corporation Tax
• Payroll
• VAT
• Bookkeeping
• Salary and dividend planning
• Self Assessment
• Contractor expenses
• General tax planning
• Ongoing accounting support
Most importantly, you don’t have to explain the contractor world to us before we can start helping you.
Phone
07596355888
Email
info@FletcherGill.co.uk
Can Fletcher & Gill help if I have both PAYE and limited company income?
Yes.
Contractors can sometimes have income from several different sources during the same tax year.
For example, you may have:
• Limited-company income
• Umbrella or PAYE income
• Inside IR35 engagements
• Outside IR35 engagements
• Dividend income
• Other personal income
We can help bring those different elements together when dealing with your company and personal tax affairs.
Do contractors need to complete a Self Assessment tax return?
Whether you need to file a Self Assessment return depends on your personal circumstances and the relevant HMRC requirements.
Where a return is required, Fletcher & Gill can prepare it alongside your company accounts so your business and personal tax affairs can be considered together.
Where a return is required, Fletcher & Gill can prepare it alongside your company accounts so your business and personal tax affairs can be considered together.
Why choose Fletcher & Gill for contractor accounting?
Because contractors need more than somebody who simply prepares accounts once a year.
We understand limited companies, contractor income and the practical implications of working inside and outside IR35.
Our approach is straightforward:
We understand how contractors work.
We explain things clearly.
And we’re here when you need to ask a question.
We understand limited companies, contractor income and the practical implications of working inside and outside IR35.
Our approach is straightforward:
We understand how contractors work.
We explain things clearly.
And we’re here when you need to ask a question.
Book a FREE 30-minute call to discuss your situation
Can I speak to someone about my own situation?
Absolutely.
Every contractor’s circumstances are different.
You might be:
• Starting your first outside IR35 contract
• Moving away from an umbrella company
• Running an established contractor limited company
• Taking both inside and outside IR35 engagements
• Unsure what a change in contract means for your accounts
Tell us where you are now and we’ll help you understand what accountancy support you need.
Still Have an IR35 Question?
We’re Here to Help.
IR35 doesn’t need to dominate your time.
At Fletcher & Gill Accountants, we understand contractors, limited companies and the accounting implications of working inside and outside IR35.
You concentrate on your work.
We’ll help take care of the numbers.
Speak to Fletcher & Gill
Book a Contractor Consultation
At Fletcher & Gill Accountants, we understand contractors, limited companies and the accounting implications of working inside and outside IR35.
You concentrate on your work.
We’ll help take care of the numbers.
Speak to Fletcher & Gill
Book a Contractor Consultation
Phone
07596355888
Email
info@FletcherGill.co.uk