Can a IT contractor (Software Developer) be outside of IR3

[ParamNirvana]

Can a IT contractor (Software Developer) be outside of IR35 ?
If yes how?
Consider that the person has his one man Ltd. company.
From the IR35 Test it is certain that a Software developer will be caught by IR35. But i have seen instances of IT people avoiding IR35.
Can anyone enlighten me on this issue in details?

cheers
Nirvana

[BlasterBates]

Re: Can a IT contractor (Software Developer) be outside of I

There is no black and white, just grey I´m afraid. This is what makes IR35 so bad. Basically you have to demonstrate you´re independent. Things like having a home office, business cards and IR35 friendly contracts help. Certainly in the contract a replacement clause is a strong pointer to self-employment. If your contract specifies working hours, holiday who you report to these are strong IR35 pointers.

I would take advice from an accountant, but if you have justifiable arguments then ignore IR35; the worst that can happen is you pay back tax. So you may as well try and get away with it, and go with an accountant who´s experienced in these matters so he can fight any IR reviews on your behalf.

[ParamNirvana]

Re: Can a IT contractor (Software Developer) be outside of I

Yes now i realize it's really very much gray and deep gray. Even those IT contractors who are curently contracing on their own Ltd. company and are out of IR35, don't wish to say anything about this matter.

I still can't understand why we need to take help of accountants or other professional in sorting out IR35 ?

[BlasterBates]

Re: Can a IT contractor (Software Developer) be outside of I

...because an accountant who is experienced is less likely to say/do the wrong thing to get you in the poo when the IR come sniffing around.

[rebeccaloos]

Re: Can a IT contractor (Software Developer) be outside of I

Blaster, I am not sure I agree with you when you say that an accountant can help you determine whether you are inside or outside IR35. Technically accountants are not able to determine this, just help you with your tax once your status has been sorted. Better go and get he help of an employment solicitor or one of these companies like Qdos etc that can scan your contract and mark it as "in" or "out"