Specialist IR35 Accountants for Contractors: Get Help Today

Tax Advice

Are you a contractor in need of support with IR35?

As a contractor, you have unique accounting needs that differ from those of traditional employees.

The right accounting firm can help you navigate the complexities of contractor accounting and take advantage of tax benefits available to you. Sherwin Currid is your local expert in contractor accounting, providing tailored solutions to help you succeed.

What is a contractor?

Contractors are professionals that provide their skills or services to a client for a set period of time. Contractors often have a varied client base and engage in project-based work, leveraging their specialist skills and expertise to help their end client.

Contractors may work as many things from software designers to locums and tend to provide expertise in their field to help drive on other businesses.

There are different ways in which a contractor can structure themselves for tax purposes and there are many considerations, such as the IR35 legislation that needs to be considered. Sherwin Currid have expert knowledge of IR35 and help many clients who want it explained clearly so they can understand how it affects them.

What is IR35?

IR35, which is also known as the Intermediaries Legislation, was first introduced in April 2000. It was brought in by the Government to address tax avoidance by individuals working in the role of an employee through an intermediary, such as a limited company. Working in this capacity is sometimes referred to as a “disguised employee” arrangement. The legislation is designed to tax ‘disguised’ employment at a rate similar to employment income tax.

If the IR35 legislation does not apply to an engagement, then it is often more rewarding for individuals to operate through a limited company. However, the penalties from not applying the rules correctly can be severe and HMRC will deem you to be an employee for tax purposes.

Whilst the principles of what IR35 set out to achieve are understandable, it would be helpful if there were greater clarity as to how contractors are taxed. Unfortunately, this area has been in the news as it continues to suffer with tax rules and definitions that are not easy to understand and apply. As a consequence, IR35 has created much uncertainty and has caused individuals to be taxed at the wrong rate. This happens because people don’t understand the legislation and don’t want to risk the fines and penalties that HMRC can levy if they get it wrong, not to mention the personal distress it could cause. Significant changes introduced in recent years have made IR35 a hot topic for the self-employed, with those falling inside IR35 subject to different tax rules.

Recent changes to the legislation have meant that many engagers now own the risk of applying IR35 incorrectly and are responsible for making the determination. If you feel the determination made by your client is wrong and you should be ‘outside IR35’, then there is a right to appeal and we can help with this.

Sherwin Currid are experts in IR35 and help many clients navigate this complex and changing legislation; minimising thier tax liability while ensuring compliance with the law.

We can help you:

Understand the IR35 rules

At Sherwin Currid we have in-depth knowledge of IR35 and have been advising clients about it and its implications for many years. Our team of experts can help you look at whether key determinants of working status such as mutuality of obligation (MOO), control, and substitution point towards you being self-employed or an employee. We can help you understand what your working arrangements say about your IR35 status and ultimately we will give you confidence that you are paying the correct amount of tax.

Advise whether your assignment is inside or outside IR35

This is a complicated area and includes your contract and working arrangements. Our experts can review contracts from an IR35 status perspective. Often an assessment is made of an individual’s status by only looking at the contract. However, this is not the only determinant and what really matters is how the individual works in practice and whether their working practice mirrors that of an employee and so could be deemed disguised employment. We can discuss and review all the elements relevant to your engagement in order to provide you with an expert opinion on your status that you can rely on and be comfortable that you have an accurate IR35 assessment.

Make IR35 calculations

We can explain, in a way that is easy to understand, the tax implications for you if you operate inside or outside IR35. An inside IR35 calculator will enable you to see how much additional tax you would need to pay if an IR35 assessment deemed you to be inside the IR35 legislation.

IR35 news

Sherwin Currid keep clients up to date with proactive tax advice, including changes to the IR35 rules. Since it was first announced in 1999, the legislation has been reviewed a number of times and the rules on how it operates has changed. Interestingly, the basic legal principals and case law around who is deemed an employee and who is not has not changed.

IR35 explained by local accountancy experts

If you are looking for an accountant near you that has many years of experience in advising and helping contractors and freelancers operate in a tax efficient and fully compliant way then please get in touch, we would be delighted to help.

We offer a range of packages to suit most clients’ needs but are always happy to bespoke a package if needed.

Our head office is in Guildford but we have a number of other offices around the South East where we are always happy to meet prospective clients to understand their situations and to explain how we can help.

The advantages of working through a limited company

Working through a limited company offers several advantages for small business contractors from tax savings to presenting a more professional image. One of the major benefits is the potential for more tax benefits. By operating through a limited company, contractors can take advantage of various tax-saving strategies and allowances to minimise their tax liabilities. Contractors should ensure that they are not under the supervision, direction and control of their clients to stay outside the scope of IR35.

Additionally, the limited company structure provides contractors with greater financial protection. As a separate legal entity, the limited company shields the contractor’s personal assets from any liabilities incurred by the business. This separation ensures that the contractor’s personal finances remain secure. Another advantage of working through a limited company is the flexibility and control it offers. Contractors have the freedom to determine their workload, rates, dividend amounts and terms of engagement. This increased control allows them to shape their work-life balance and maintain a greater degree of autonomy.

Furthermore, operating through a limited company can enhance a contractor’s professional image and credibility. Clients often prefer to work with contractors who have their own limited company, as it demonstrates a higher level of professionalism and commitment to their craft. Moreover, limited companies provide opportunities for business growth and expansion, while ensuring the protection of personal data. Contractors can take on additional clients and projects, expand their service offerings, and even hire employees as their business grows. This scalability allows contractors to establish a sustainable and thriving business. Overall, working through a limited company offers contractors numerous advantages, including tax benefits, financial protection, flexibility, professional image enhancement, and business growth opportunities. If you have any questions or would like to make an enquiry about setting up a limited company, please do not hesitate to contact us.      

Guidance on setting up your limited company

Setting up a limited company for your contracting business can be a daunting task, but with Sherwin Currid by your side, it becomes a smooth and effortless process. Our team of expert contractor accountants knows the ins and outs of setting up a limited company, and we are here to provide you with the guidance you need.

We start by helping you choose the most tax-efficient structure for your business. Once we’ve determined the most suitable structure, we’ll guide you through the registration process with Companies House, as well as other registrations such as VAT and PAYE if necessary. Our experts will ensure all necessary documents are prepared accurately and submitted on time, saving you valuable time and minimising the risk of errors.

At Sherwin Currid, we understand that every contractor’s situation is unique. That’s why we take a personalised approach to setting up your limited company to ensure you can focus on your work while we take care of your personal and corporation tax matters.

Sherwin Currid Directors

Our founding directors, Martyn Currid and Max Sherwin, set up Sherwin Currid to help freelancers and small businesses with accountancy. Since then we have grown to look after a wide range of clients while keeping our personal, professional service.

Our Client Testimonials

Some of our clients have been kind enough to leave us reviews of our accountancy services. Don’t just take our word for it, read some testimonials to see how we help people with their business and personal tax.

Looking for a wide range of accounting support?

If you are interested in switching your accountancy to us then get in touch today.
We will organise a free consultation, where one of our specialists will talk you through your options.