IT Contractors and IR35

RBS Chartered Accountants - IT contractors and IR35

It’s one of the biggest stumbling blocks for freelancers, particularly IT contractors. The complex (and widely disliked) IR35 tax legislation, lying in wait at the end of the tax year. IR35 was devised by HMRC to stop freelancers (particularly IT contractors) drawing income in the form of a small salary and large dividends from their limited companies. HMRC’s argument is that if the same individual were working for an employer, they would simply be paid a regular salary. The worrying thing, as we find again and again at RBS Chartered Accountants, is that many of our IT contractor clients are completely unaware of the IR35 legislation until they come to us. Our advice is invariably to look after the business and we’ll look after the accounting, the bookkeeping and compliance with IR35. IR35 services offered for IT contractors (and others) by RBS Chartered Accountants include:

• Ensuring you comply with IR35 legislation and are genuinely a contractor.
• Checking through contracts with clients, ensuring you don’t fall foul of IR35 rules.
• Structuring your accounting business not just to comply with IR35 but to be as tax efficient as possible.
• Setting up a salary and dividend structure that accords with IR35 legislation.
• Supplying pay slips on a regular basis
• Advice on whether you should VAT register and the type of scheme to apply for.
• Taking care of your bookkeeping and year-end accounts, ensuring compliance with IR35.

In addition, RBS Chartered Accountants will provide comprehensive advice on making sure your company structure fits the business you’re in and the way you work. We aim to make our clients money, while making their lives easier. Give RBS a call today to find out whether we can work together, and how we can help you with IR35 and much more.