IR35

From April 2021, the UK imposed its Off-Payroll Legislation alongside current IR35 law.

These changes do not affect UK companies defined as a small business (the definition of a small business is explained here) nor do they affect non-UK companies without a presence in the UK.

Unaffected businesses do not need to provide a Status Determination Statement. Engagements with Natalie Lawrence Limited will still need to meet the Outside IR35 criteria (see the analogy below).

Under the legislated changes, those who wish to hire contractors and are not exempt will need to provide a Status Determination Statement to confirm the IR35 status. You can obtain this via the HMRC's CEST (exercise caution with this tool) or via more comprehensive tools by independent consultants (e.g. IR35 Shield, Qdos IR35 Status Review). Please refer to the links below for more guidance. 

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If you need help understanding what constitutes a mainly outside or inside IR35, then aside from HMRC's web site, here are a few recommendations:
 

• IR35.com (IR35 guide by YunoJuno) https://www.ir35.com/businesses

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• Dave Chaplin's book IR35 & Off-Payroll: Explained is an excellent guide to the Off-Payroll and IR35 legislations. Read this in particular if you plan to use the CEST tool.

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If you'd like some more information on making a status determination, these links may be of use:

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• Status Determination calculator guide by online accountant Crunch https://www.crunch.co.uk/knowledge/ir35-calculator

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• Contractor Calculator's guide on How to get an IR35 pass using the HMRC CEST  https://www.contractorcalculator.co.uk/how_ir35_pass_hmrc_status_tool.aspx

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• HMRC's Employment Status Manual (ESM0500): Provides guidance on how to determine the status of a worker. It includes examples of case studies that would be ruled Outside or Inside IR35.

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• Qdos Contractor's Status Determination Statement example  https://www.qdoscontractor.com/docs/default-source/resources/final-status-determination-statement-template.pdf?sfvrsn=2

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Natalie Lawrence Limited works Outside IR35 

Only Outside IR35 contracts and working practices will be accepted by Natalie Lawrence Limited.

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In order to meet Outside IR35 working practices, it is best to carefully consider (a) what you want and (b) whether how you want it done could be classified as "controlling" and is therefore necessary.
The more "hands off" the approach, the better. See examples in HMRC's Employment Status Manual for more details.

To be clear, the rules do not prevent clients from providing feedback or requesting changes to drafts of work - this is accepted as normal practice. 

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