IR35 & reasonable care

This webinar, "IR35 & Reasonable Care," presented by IR35 Shield CEO Dave Chaplin, offers crucial guidance on a critical aspect of Off-Payroll Working (OPW) compliance: taking "reasonable care" in making IR35 status determinations. Failure to exercise reasonable care can invalidate a Status Determination Statement (SDS) and transfer the tax liability to the client, leading to significant penalties and extended enquiry windows from HMRC.

The session explains what "reasonable care" truly means in the context of IR35, moving beyond simple compliance to a proactive approach that protects your business. Dave Chaplin delves into the legal principles, drawing from both statute (TMA 1970) and extensive case law, to outline what HMRC expects. Key elements of demonstrating reasonable care include having a well-documented process for assessments, utilising accurate information, considering all relevant factors of the engagement, and maintaining comprehensive records.

The webinar highlights common pitfalls that demonstrate a lack of reasonable care, such as relying solely on HMRC's flawed CEST tool, using untrained staff, applying the law incorrectly, or failing to properly scrutinise contracts and working practices. Furthermore, it addresses the importance of oversight when engaging third parties for assessments. By adopting the principles discussed, businesses can build "defendable determinations" that stand robustly against HMRC scrutiny, ensuring compliance and mitigating potential financial risks and penalties. This is an essential session for anyone responsible for IR35 compliance.

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