IR35 Guidance – See the FULL Picture

We’ve boiled down the HMRC Check Employment Status for Tax (CEST) process into a simple one-page process flow.

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It can help you to reliably predict outcomes based upon the nature of the contractual obligations and working arrangements you embrace.

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If your CEST responses cannot be disproven and you implement the 34square substitution process, your crucial Right of Substitution is unchallengeable.

  • We can walk clients and contractors through the detailed questions and relate them to the process flow.
  • Sign up to the beneficial, compelling right of substitution capability 34square provides.
  • Contractors have a robust, executable right of substitution.

Don’t neglect the other IR35 status factors.

  • Whilst Right of Substitution is a major determining factor, it makes sense to avoid neglecting others.
  • This is not because a bullet-proof Right of Substitution doesn’t, in theory, take you outside IR35 on its own.
  • It’s because in practice, HMRC may still pursue an inquiry due to perceived weaknesses in other areas.
  • It makes sense to do everything you can to avoid the life and work disruption of even a dispute you’ll most likely win.

Other major IR35 status determination factors.

  • Mutuality of Obligation (see Tipping the Scales) is not expansively covered in CEST, but can be a pivotal factor.
  • Presence and degree of financial risk can be pivotal.
  • Degrees of control and autonomy over working arrangements, including hours of work, location and working methods used, can be pivotal