Anyone with an interest in contracting will be aware of the importance of getting IR35 status correct. Regardless of the upcoming changes (background on that here), IR35 status has always been something contractors need to be aware of and ensure their working practices and contracts reflect the correct status.
The changes coming in 2020 (see here for more background) don’t change the way an IR35 status is determined, only who is responsible for making the determination. Having said all that, it’s apparent to contractors that asking clients to make the determination may well mean contractors being told they are responsible for determining if they are inside IR35 or not.
The financials and logistic impact on this decision for contractors could be substantial, so what can contractors do to ensure status decisions are correct? We are working with contractors to help make their IR35 status more explicit – i.e. looking at each test and ensuring that it is clear, whether the engagement meets the employment standard or not.
The first pillar we’re looking at is substitution. Sometimes a thorny issue for contractors and clients alike, it’s often a theoretical right only and, as such, can be challenged by HMRC. So, without actually enacting substitution (which is generally a last resort) how can we more clearly demonstrate that the contractor does have the right of substitution?
If you would like support in making your substitution position clearer, apply to join Evolution’s substitution scheme by contacting me on firstname.lastname@example.org.
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