Client Guide to IR35

[Taita]

LOL! But very nice try!

Do you seriously think client HR's are going to be bothered how IR35 impacts contractors!?

They go out to agencies for contractors because they dont want to take on employees but then treat contractors the very same as those employees they dont want to take on!

Never, ever helps to highlight to a client that you are structured so that you can mitigate your tax. As others here have said, the employers are not interested in helping you pay less tax than they do and if you are working alongside employees doing roughly the same work the employer is even less likely to be sympathetic, whatever they say to your face.

[rd409]

I may be completely wrong here, but if you are out of scope of IR35, you are outside. If you design your working practices and your contracts, to avoid IR35, then it is not going to hold too strong in case of an inspection. I would never say to a client that my working practices are based on the IR35 principles, but I would just mention at the start of the contract, that this is how I would like to work, and would be flexible to accommodate any genuine requests to deviate from those practices for a while.
Try to make sure that you are working for your own company and it has a set code of practice. If that is the same as the client, then no problem, but if they are different, your rules are adhered to. If the client is happy with that, I would not be too much worried about IR35. Take out an insurance for the legal expenses, and forget about it.

My 2p.
Dave.

[Wanderer]

If you design your working practices and your contracts, to avoid IR35, then it is not going to hold too strong in case of an inspection.

Imagine you convince the client to structure your engagement in such a way that it falls outside IR35 (say, fixed price deliverable, work subcontracted out by your LTD, provision of your own equipment etc). If HMRC challenge this saying you only did it to avoid being a disguised employee and avoid IR35, you could simply counter that you are a small businessman trying to build up a consultancy business. As a business, you have to structure your engagements in this way to give your business the flexibility to grow and you wouldn't have this if you took on the engagement as an de-facto employee.

Provided that is indeed the way you are working then there is nothing HMRC can do about you deliberately structuring your business this way. Small businesses help drive the economy forward (eg, by paying corporation tax) and this something the government is trying to encourage.