IR35 & Consultancies

Navigating IR35 and off-payroll legislation is critical for businesses, HR, and contractors, especially with the complexities of consultancy models. This comprehensive webinar, led by IR35 Shield CEO Dave Chaplin, delves into the intricacies of IR35, off-payroll working (OPW) rules, and the crucial distinctions between labour supply and genuine contracted-out services. Learn about the historical context and terminology of IR35, from its 2000 inception as Intermediaries Legislation to the 2017 and 2021 OPW extensions.

A key focus is understanding the "chain" in engagements and correctly identifying the "client" and "fee-payer" to determine tax liabilities. The webinar highlights how large firms are increasingly using consultancies to manage OPW impact, but warns of significant risks if these engagements are misclassified as labour supply rather than service provision. A real-world example of HS2's £9.5 million tax bill due to misclassifying a supplier as providing services rather than labour underscores the importance of rigorous due diligence.

Discover why robust contracts are paramount, avoiding common pitfalls like using old agency contracts or including "employee-like" clauses. The session also provides a stark warning against "unsafe determinations" – those likely to incur substantial defense costs and protracted HMRC enquiries, potentially leading to tribunals. Dave Chaplin, drawing on his extensive experience in IR35 tribunals, emphasises the necessity of "defendable determinations" built on well-drafted contracts, strong evidence, and a clear understanding of legal precedent. Finally, the webinar critically assesses HMRC's CEST tool, exposing its flaws and unreliability as a defence mechanism for compliance. Gain practical insights and best practices to ensure IR35 compliance, protect your business, and confidently navigate HMRC investigations.

If you're unsure about your IR35 compliance process, our experts are here to help. Book a call and speak to an expert.