IR35 and Limited Company Contractors
What evidence do contractors need to prove outside IR35 status?
To prove their IR35 status, contractors need evidence such as a written contract, statements of work, and any additional agreements, as well as an understanding of the nature of their relationship with the client and how it is managed, to demonstrate that they are not subject to IR35 rules.
More detail
When working for a small business (exempt from the off-payroll rules), and therefore responsible for assessing their own status, contractors will need to gather and present evidence that demonstrates their IR35 status to potential clients and intermediaries in the supply chain.
This can be done by completing a Status Determination Statement (SDS). They will also require a robust and comprehensive contract that outlines the terms of the relationship. For both, it is important to get professional advice to ensure compliance with the legislation and to minimise the risk of penalties and fines for non-compliance.
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