IR35: Limited Company Contractors & the role of the agency

2. IR35: Limited Company Contractors & the role of the agency • Overview of IR35 – what matters; what doesn’t • The Enquiry Process – everyone is involved • Agency Contracts & Schedules – how you can help

3. The Hypothetical Contract End Client Agency PSC Worker

4. IR35: what’s important • Key Issues • Personal Service: The unfetteredright to substitute • Control: The Client’s right to exercise control • What/ Where/ When/ How • Mutuality of Obligations • More than a simple offer and acceptance of work

5. IR35: what’s not important • Secondary Factors • Business Enterprise • Financial Risk • Business Entity Tests: See ESM3015 “help … self-assess the overall risk that the IR35 provisions will apply to their business” “The tests are voluntary” • PCG Survey/Tribunal Cases/The Public sector

6. Contractual Terms: Don’t forget the schedule! • Look at the Services Description (Job spec?) • What are the Deliverables? (JLJ Services) • Remember the contract & schedule state what you will be doing.

7. HMRC’s “new” approach • New Approach issued 9th May 2012 • Four Specialist Offices • Better risk selection? • HMRC keen to get out quick where necessary, but will pursue rigorously where they believe they have a case • New Letters asking whether you have considered IR35

8. Responding to the opening letter • Need for professional advice … And a robust response! • Can’t expect HMRC to simply accept the response – they may want to test it • How will this impact your client’s business? … And therefore, yours? • Can the next response settle matters, or are we on the journey to Tribunal?

9. Agencies & Umbrellas • The Contractual chain: How robust? • What are the MSC/debt transfer implications? • What are the other tax implications?

10. The Contractual Chain • Contracts for services between Agency and Umbrella • What are the arrangements between Agency/Umbrella? • How is the information recorded in your records? • Who sends paperwork to individuals?

11. Managed Service Company Legislation/Debt Transfer? • Umbrellas not envisaged as caught by MSC Legislation • Are you dealing with an Umbrella or a payroll bureau? • Can you be certain that the Umbrella or Commercial Contractor is operating correctly?

12. Reviewing your suppliers • Invoicing, payment & commission arrangements • Umbrellas • Employment contracts & procedures • Statutory obligations • Expenses policies • Marketing • Are the staff correctly trained? • Commercial Contractors • Contracts for Services/Part of the contractual chain? • Employment issues? • HMRC protection?

13. Accountax: Offering peace of mind to the Supply Chain • Agency Audit • Supplier Audit • Full and detailed report from Status Specialists • Retained Services to ensure long-term protection of the Supply Chain

14. Summary • IR35 • Competitive advantage by offering limited company contractors improved contractual terms • Umbrellas/Commercial Contractors • Audit services for peace of mind • Specific retained services for Agency suppliers • More information and detailed notes available by visiting Stand G17 or contacting mail@accountaxconsulting.com