In our previous article posted to this site on entitled ‘IR35|Rule Changes’, we explained the nature of the changes to the IR35 rules.  

With these forthcoming changes coming into force on 6 April 2021, in order to ensure compliance, a close examination of all contracts which may be affected may well be required.

Timothy Thompson of Kangs Solicitors considers contractual issues worthy of consideration.

The team at Kangs Solicitors offers considerable experience representing companies, directors and Individuals in tax issues both civil and criminal in nature and involving commercial contract considerations generally. 

Kangs Solicitors is highly regarded for its work on behalf of clients by the leading law directories the Legal 500 and Chambers & Partners.

For an initial no obligation discussion, please call our Team at any of our offices detailed below:

Contract Considerations | Kangs IR35 Tax Investigations Solicitors   

When HMRC conducts an IR35 investigation, it will interrogate all aspects of the true trading relationship between all of the parties involved, far beyond the wording of any written contract which may exist, in order to establish the correct level of revenue payable.

However, the existence of a properly worded, detailed and accurate contract will clearly assist the Revenue in its deliberations.

It is imperative that the relationship between the parties is clearly documented.

There are numerous aspects of trading to be considered when preparing commercial contracts, including provisions covering revenue and tax matters generally, many of which would not occur to anyone without experience of such document preparation.     

Simply by way of very limited examples, with regard to IR35 contractual considerations, aspects include:

  • control – who controls how the service is to be provided?
  • time and pay – how many hours have to be completed and when is payment to be made?  
  • substitutions – are substitute contractors/workers permitted?
  • does mutuality of obligation exist?
  • exclusivity – do any parties enjoy exclusivity or are there shared obligations?   

How Can We Assist? | Kangs Tax and Commercial Solicitors

The team at Kangs Solicitors regularly advise companies, directors and individuals on many tax issues including those involving IR35 and involvement in investigations conducted by HMRC.

Additionally, our team regularly reviews and drafts trading contracts of every nature on behalf of clients.  

Who Can I Contact? | Kangs HMRC Dispute Resolution Solicitors

Hamraj Kang leads an award-winning team of solicitors nationally reputed for its excellence.

We welcome new enquiries by telephone or email.

Our team of lawyers is available to meet at our offices in London, Birmingham or Manchester or, alternatively, we are happy to arrange an initial no obligation meeting via telephone or video conferencing.

For initial enquires please contact:

Hamraj Kang
hkang@kangssolicitors.co.uk
07976 258171 | 020 7936 6396 | 0121 449 9888

Stuart Southall
ssouthall@kangssolicitors.co.uk
0121 449 9888 | 0161 817 5020

Tim Thompson
tthompson@kangssolicitors.co.uk
020 7936 6396 | 0121 449 9888