IR35 and The Settlements Legislation

Operating through a limited company can be a very tax efficient vehicle and depending upon the remuneration structure, may avoid National Insurance on your earnings entirely.

The Inland Revenue are obviously keen to avoid abuse of this and to this end, they may attack common tax avoidance techniques, most commonly via 2 pieces of legislation known as ‘IR35’ and ‘The Settlements Legislation’.

Broadly speaking, IR35 may apply where the main fee earner of the company could be considered to be an employee of the company’s ultimate client, were there no intermediaries involved.

The settlements’ legislation could apply where someone other than the company’s main fee earner receives income from the company.

These two issues should be discussed with you in the light of your own personal circumstances and therefore, if you have not discussed these issues with your accountant please ensure you do so at the earliest opportunity.

Our experts know the IR35 tax legislation inside out. They know the rules and regulations, definitions and common mistakes that lead to HMRC enquiries and investigations. They also understand what contractors want: clear explanations, creative yet compliant interpretations and sound advice. The Hillier Hopkins Contractors Team has helped hundreds of individuals, like you, to set themselves up to ensure they fully comply with the legislation, but in the most tax-efficient way.

For more advice on IR35 and The Settlements Legislation, please speak to one of our experts on +44 (0)330 024 3200

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