IR35 Compliance action points for contractors
In view of the recent High Court Verdict in the ‘Dragonfly Case’ Jenrick CPI would like to re-emphasise the importance of a contractor’s responsibilities in relation to IR35.
Jenrick CPI believes that the initial shock of the Jonathan Bessell of Dragonfly Consulting case has now passed and it would appear that it has not lead to ‘doom and gloom’ within the contracting sector that was originally mooted.
Instead the speculation has lead to detailed analysis of the case itself and clarified some key action points for contractors. Jenrick CPI urges contractors to take some simple steps to add weight to their IR35 evidence:
- Contractors should keep a list of skilled colleagues, checking their availability and rates in order to build a file of potential substitutes. This can be used in a real scenario but can also be kept up-to-date and then used as evidence in the event of an investigation.
- Contractors could also bring in expert colleagues, sub-contracting elements of their work to colleagues and absorbing the cost themselves clearly demonstrates they are not a company providing personal service, not an employee and in business on their own account.
- It is evident that the Dragonfly verdict will have implications for contractors who are trying to stay outside of IR35 and many contractors would be wise to seek expert assistance urgently to clarify the status of their contracts.
Should you have any queries regarding IR35 compliance, please contact Jenrick CPI for advice.
www.jenrickcpi.co.uk | info@jenrickcpi.co.uk
Philip Fanthom (Sales Director) – 01932 245500