Completing the picture
a total defence
Paul Mason
Accountax Consulting
Recruitment Agency Exhibition 2013
Wednesday 2nd October 2013
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
Completing the picture  a total defence
The Hypothetical Contract
End Client
Agency
PSC
Worker
Completing the picture  a total defence
IR35: what’s important
• Key Issues
– Personal Service: The unfettered right 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
Completing the picture  a total defence
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
Completing the picture  a total defence
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.
Completing the picture  a total defence
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
Completing the picture  a total defence
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?
Completing the picture  a total defence
Agencies & Umbrellas
• The Contractual chain: How robust?
• What are the MSC/debt transfer implications?
• What are the other tax implications?
Completing the picture  a total defence
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?
Completing the picture  a total defence
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?
Completing the picture  a total defence
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?
Completing the picture  a total defence
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
Completing the picture  a total defence
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
Completing the picture  a total defence
Thank you
Visit us at Stand G17
Accountax
Trinity House
2 Opal Drive
Fox Milne
Milton Keynes
MK15 0DF
Call:
08450 660 035
Email: mail@accountaxconsulting.com
Website: www.accountaxconsulting.com
Completing the picture
a total defence