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IR35 and the “contractor’s tax”

If you are a contractor with your own limited company, some or all of your contracts might fall within the IR35 tax legislation, which means your company would be treated for tax purposes as an employee of your ultimate client. If that happened, you could end up paying almost twice as much tax by comparison to a self-employed contractor. So DSCO has a range of services to help you remain fully IR35-compliant – click on the links below to find out more:

• IR35/general accountancy services
• Tax Investigations Package
• Contract Writing
• Contract Reviews
• Survive35 Tax Safe IR35 Tax Loss Insurance

IR35 / general accountancy services

As part of our general accountancy service for contractors running their own limited companies, DSCO will:

• Prepare quarterly management accounts and payroll, assist with VAT, PAYE and dividend vouchers
• Compile annual accounts for shareholders and Companies House and compile the Corporation Tax Return for HMRC
• Prepare your Income Tax Self Assessment Return.

Tax Investigations Package

DSCO provides a service that, for an annual fee, can provide you with the following benefits:

• HMRC Enquiries under IR35 – up to £75,000 of free accountancy fees
• Corporation Tax and Income Tax Full Enquiries – up to £75,000 of free accountancy fees
• Corporation Tax and Income Tax Aspect Enquiries – you pay the first £300 of accountancy fees; we will then provide up to a further £1,200 of free fees.
• PAYE Compliance Disputes – up to £75,000 of free accountancy fees
• VAT Compliance Disputes – up to £75,000 of free accountancy fees

Contract Writing

It is essential that you have a written contract between your company and your end-user client, so DSCO recommends that you use Accountax, who provide these specialist services.

Contract Reviews

Where you are already working under an existing contract, or negotiating a renewal, DSCO recommends that your contract and any renewal terms be professionally reviewed. DSCO recommends Accountax, who provide these services. A full report is provided, which will include any recommendations to improve the contract wording and which will conclude with an IR35 “pass” or “fail”.

Survive35 Tax Safe IR35 Tax Loss Insurance

Should HMRC investigate your circumstances and succeed in showing that one or more of your contracts place you within IR35, you can purchase Tax Loss Insurance directly from Abbey Tax who own Accountax. This provides for up to £75,000 of tax and National Insurance Contributions levied by HMRC, as long as you have used their above services.

To find out more about DSCO’s specialist services for contractors:
call 01920 444900 or email info@dsco.co.uk