Are You Within the Scope of IR35?

As if there wasn’t enough to think about when going into business for yourself as a freelancer, contractor or consultant, but when it comes to tax laws the whole process can be mind boggling. Within the past few years HMRC has focused on contractors still trying to seek tax shelters in certain regards such as being paid in dividends and there are new regulations which must be strictly adhered to.

No one likes to be scrutinised by the taxman which is why it pays to hire specialist contractor accountants such as Nixon Williams. If there is any doubt as to whether you are inside or outside the scope of IR35 it is better not to make a guess because the legal ramifications can quite literally put you out of business. Penalties can be huge, especially if HMRC finds that more than one year’s filing was not in compliance.Nixon Williams accountants  can help contractors, freelancers and locums determine whether or not they are working inside or outside IR35 before problems ensue. Although there is an IR35 Checklist and an IR35 Guide on the Nixon Williams website, it is better not to rely totally on those tools as these are informational only. Nothing replaces the advice of qualified accountants with almost two decades in the industry.

Bear in mind that online tools such as guides, brochures and a handy Take Home Pay Calculator are just that – tools. These can help you better understand the scope of UK regulations such as IR35 however tax law is quite complex and the slightest omission can cause huge problems. Although it sounds cliché, it really is better to be safe now than sorry later. Nixon Williams are in the business of helping small business and the self employed to avoid tax problems by providing professional advice and services.