How to avoid IR35

There are some basic precautions open to contractors that protect against IR35 which, having been reviewed by the OTS and retained by the coalition government,  still seeks to tax ‘disguised employment’ at a similar rate to employment, writes Kate Cottrell of Bauer & Cottrell and the Office of Tax Simplification.

Being in business of your own account, in terms of how you think, act and what you can demonstrate (‘badges’) tops the list. Your contract must also be IR35-compliant, or ‘IR35-friendly’ at the least. Moreover, the contract’s terms should accurately reflect  your working practices – just one of the many ‘due diligence’ steps that contractors can take to ensure that they remain legitmately outside of IR35.

Download CUK’s 2-minute guide - How to Avoid IR35, by Kate Cottrell, here.