Is a Contractor More Likely To Be at Higher Risk of IR35 Investigation?

London, United Kingdom – WEBWIRE – Thursday, January 30, 2014

Through self-assessment, a contractor can be more educated and less likely to fall afoul.

Changes to the controversial IR35 legislation have been under discussion for some time now. Contractors may have been concerned about the implications regarding their tax liability following the initial release of the legislation. The government has promised to be more open when it comes to feedback and making changes if necessary and as such we should shortly see modifications designed to clarify.

A specific business test will run alongside six specific scenarios, with the aim of educating the contractor and ensuring that they fully understand their “risk.” The so-called “business test” determines whether the contractor is at low, medium or high risk of what the government refers to as a potential “intervention.” The overall idea behind these modifications is that, through self-assessment, a contractor can be more educated and less likely to fall afoul.

Professional Representation Network stands in the corner of the contractor in helping them to completely understand what this tax legislation is all about. PRN is dedicated to education in all matters of government legislation, as they may affect the contractor. Nothing is more important to this organisation than to protect the contractor if at all possible. Thus, as the new IR35 rules may start to roll out, accurate advice will be provided to the contractor to help lessen risk or exposure.

A prior approach to IR35 risk assessment could have focused too much on each individual contract, rather than looking at the contractor as an actual business entity. This is what the new business test is designed to clarify. In theory, there would not be as much need to worry about tax liabilities in a contractor contract, unless the contractor falls into a medium to high risk category. In these cases the government advises the contractor to be fully aware of the different tax scenarios and guidance. Of course, this is where an organisation such as Professional Representation Network steps in to grasp the meaning of the rules and to advise the contractor appropriately.

This type of complicated approach to tax legislation should not be a surprise, but it underlines the need for a contractor to get professional advice all the way along the line. Working with an intermediary organisation that keeps up to date with proposed changes to tax regulation is highly advised for the contractor today.

About Professional Representation Network

The Professional Representation Network is a complete contracting provider, providing a variety of services to contractors from varying industries around the world. PRN identifies opportunities, negotiates contracts and provides support to contractors at every stage of the relationship. Relying on 40 years of experience in consulting and representation and access to an established network, PRN brings passion to help develop a contractor’s professional life.

( Press Release Image: https://photos.webwire.com/prmedia/37723/184989/184989-1.jpg )