IR35 & the builder test
Dave Chaplin, CEO of IR35 Shield, explains the “builder test” as a simple way to distinguish genuine self-employment from disguised employment. Learn how to structure outside IR35 engagements correctly, avoid common compliance pitfalls, and ensure your contracts and evidence can stand up to HMRC scrutiny.
This webinar, "IR35 & the Builder Test," led by IR35 Shield CEO Dave Chaplin, provides essential insights into distinguishing between genuine self-employment and disguised employment under IR35 and Off-Payroll Working (OPW) rules. The session introduces the "builder test" as a practical analogy to assess the true nature of an engagement: if you hired a builder, would you supervise their every move or simply expect the job done? This highlights the crucial difference between a contract of service (employment) and a contract for services (self-employment).
Dave Chaplin emphasises how clients should (and should not) treat contractors engaged outside IR35. The webinar stresses that for a contract to genuinely be "for services," it must possess the hallmarks of a commercial agreement, including clear deliverables and commercial risk for the contractor.
The discussion also revisits the historical context of IR35, originating as Intermediaries Legislation in 2000, and its extension through the OPW rules in 2017 (public sector) and 2021 (private sector for medium/large companies). It reinforces that contracts are "king" and HMRC will meticulously examine them. The session concludes by advocating for robust assessments and reliable evidence over hearsay, ensuring businesses can confidently defend their IR35 positions against HMRC enquiries.
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