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Here Qdos explains the importance of a contract review:
Qdos Consulting writes:
Those who are seasoned veterans of the contracting community will be familiar with the workings of agencies. These large organisations will typically assure any contractor they come across that they offer fully IR35-compliant contracts. They will invariably point to the fact that their terms and conditions have been drafted by legal experts and pass all the necessary IR35 tests.
Newcomers to the world of contracting, or those who were rushed through their agency or client’s processes in order to make a quick start on a particular assignment, may have taken solace in their agency’s comments. Unfortunately, the inconvenient truth is that a large number of agencies use contracts that are wholly inappropriate for those wishing to operate as a ltd company contractor.
Although many agency contracts will have been drafted by legal experts, the IR35 legislation is open to interpretation. Without up-to-date knowledge of recent case law, and a firm grasp of the taxation issues at hand, it is extremely difficult to draft an entirely IR35-compliant agreement. As such, even if an agency has the best of intentions, attempts to accommodate for all the necessary provisions of legitimate self-employment frequently fall short of the mark.
Additionally, agencies will often have blanket agreements with larger clients that are intended to govern their relationship with many contractors. As there are very few implications for agencies if a contractor using one of their agreements is caught by IR35, they will, understandably, be more inclined to cater for the end client’s requirements rather than those of the individual contractors. Frequently, these requirements can have negative implications from an IR35 perspective.
Many contractors will simply take their agency at their word and assume that they have an IR35 friendly agreement. More savvy contractors will want to seek assurances elsewhere. The first port of call for many of these contractors will be their accountants – many of which do offer IR35 contract review services. The downside of this approach is that many accountants, while familiar with the concept of IR35, may lack the specialist knowledge to complete a satisfactory appraisal of your status. This is acknowledged by many larger accounting firms who outsource their IR35 reviews to independent specialists.
Qdos have successfully defended over 1000 IR35 cases and are leading taxation specialists. Qdos’ team of IR35 consultants (many of whom have worked for HMRC directly) are able to offer full and detailed IR35 contract reviews to freelancers. These reviews will highlight all the strengths and weaknesses of your contract and provide you with all the necessary information to bolster your IR35 position.
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For more details on how to apply for a £50 contract review see: Special offer: Contract Reviews for £50.
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Susie Hughes © Shout99 2008
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