For businesses hiring contractors, ensuring compliance with HMRC’s IR35 legislation is critical. A comprehensive IR35 review involves two key components: contractual reviews and working practice reviews. Both must be aligned to meet the “reasonable care” threshold that HMRC expects.
Many businesses rely on online tools, like CEST, to assess working practices, but if the contracts are not aligned with these practices, this approach may not meet the necessary due diligence requirements. Using generic template contracts that don’t accurately reflect the realities of the engagement further exacerbates this issue.
For a robust IR35 process, the contract and working practices must align seamlessly. If the contract does not reflect the reality of the working arrangement, courts are likely to disregard the contract and focus on the actual working practices, which could lead to non-compliance. This could leave businesses exposed to significant tax liabilities.
Additionally, businesses should be aware of the importance of a Master Service Agreement (MSA) in their supply chain. An MSA between the hirer, fee payer, and any other relevant parties should clearly outline the nature of the relationship and responsibilities under the April 2021 IR35 legislative changes. This is crucial to ensuring compliance and minimising risk.
Brookson Legal’s Contract Review & Amendment service ensures your existing agreements meet IR35 compliance standards and accurately reflect your working practices. As an SRA-regulated law firm with IR35 specialists, we provide expert guidance to help you navigate the complexities of compliance.
Our expert solicitors will assess your contracts for potential risks, recommend amendments to align with HMRC requirements, and provide tailored solutions to protect your business. We’ll ensure that your documentation reflects the realities of your working relationships, demonstrating Reasonable Care and minimising the risk of IR35 challenges.
From advising on necessary contractual changes to supporting the drafting of new contracts, our team is here to assist at every stage. By updating your contracts with precision, we help you maintain alignment with HMRC guidelines and reduce the risk of non-compliance.
Access to an SRA regulated law firm with dedicated IR35 experts.
Review of upper and lower contracts.
Full end to end drafting of contracts.
All services are provided by an SRA regulated law firm and advice is protected by client legal privilege and professional indemnity insurance.
Find out more about our complete suite of services for End Hirers, along with further information to help you understand the implications of IR35 with our downloadable guides.
Brookson Legal Services is an SRA regulated law firm that focuses on IR35
Experience
We have been advising on IR35 since its introduction in April 2000 and we have team members who have sat on HMRC’s IR35 Forum. We are often instructed to act for clients who are subject to an IR35 enquiry by HMRC.
Extensive Team
Our team of experts are the only SRA regulated law firm in the UK focusing on IR35 compliance.
Measurable Solutions
We are experts in applying and presenting the law in a way that’s accessible and understandable and we will help you put processes and policies in place to manage your IR35 obligations, with the minimum impact upon “business as usual”.
Accessibility
Our team of legal experts are on hand to support you with all your IR35 compliance needs and are always a call or email away. We regularly carry out introductory consultations, work force audits, face-to-face presentations, workshops and webinars.