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| CURRENT SECTION :: IR35 / IR591 | UK's most visited IT Contractor Site - 250k unique visitors March 2008 |
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The Presiding Special Commissioner has released a document explaining how IR35 appeals are conducted, and how the "employment status" of a worker is determined. The document can be read in full here. Contents 1. What is an IR35 appeal? 2. Why is it called an IR35 appeal? 3. What legislation applies to IR35 appeals? 4. What usually has to be decided in an IR35 appeal? 5. Why is an IR35 income tax appeal unusual? 6. What will I have to show? 7. What documents will I need? 8. What oral evidence is likely to be needed? 9. How should I get evidence from the client? 10. Does the witness evidence have to be in writing? 11. Must the evidence be disclosed in advance? The document outlines what an IR35 Appeal is, the process involved in bringing an appeal, together with relevant factors which may show that the worker is not an employee of the client, as per the IR35 rules. We have reproduced the key factors below: What will I have to show? As in almost all other appeals the burden of proof in an IR35 appeal is on the appellant. That means that it is up to the appellant to show that the Inland Revenue are wrong and that the worker should not be regarded as an employee of the client. A number of factors are relevant but none is conclusive. Some relevant factors include: (1) how the payments for the work are calculated; whether this is by the volume of work done or by reference to the number of hours worked; (2) whether the worker gets paid for sickness and holidays and what the pension arrangements are; (3) whether the worker's absences have to be approved in advance; (4) whether the client can control what, where, when and how the work is to be done; (5) whether the worker must do the work personally or whether he can provide a substitute; (6) whether the worker provides his own tools and equipment; (7) whether the worker is part and parcel of the client's organisation; (8) whether the worker occupies a post (such as General Manager or Secretary) in the client’s organisation; (9) whether the worker has a job title in the client’s organisation; (10) whether the worker works continuously for the client or whether the worker has a series of engagements; (11) whether the worker hires his own employees; (12) whether the client is obliged to offer work and whether the worker is obliged to do the work; (13) whether the worker works, or can work, for other clients; (14) whether, and under what conditions, the contract can be terminated by the client; (15) whether the worker assumes any financial risk; and (16) whether the worker has an opportunity to make a profit on his own account. The document can be read in full here. Jul 2, 2003 Email this article Printer friendly page Previous Page
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