Working inside IR35? You can challenge your end-hirer / client’s decision

If you find yourself with an ‘inside’ IR35 status determination, and you believe that you are truly ‘outside’ then you are able to challenge the end-hirer / client’s decision. You may feel that a wrong determination has been made because a blanket status has been placed upon you, or your end-hirer / client either simply doesn’t understand their obligations when it comes to IR35, and by placing everyone ‘outside’ they are mitigating any financial risk from getting it wrong in the first place.

Whatever reason your status has been incorrectly or unfairly determined, you can challenge it by issuing a ‘client-led disagreement’, which will alert your end-hirer / client to the fact that you believe your status is incorrect. You can begin the process by completing the following steps:

1. Inform your client of your wish to challenge their decision, and request the ‘status determination sheet’. Every end-hirer / client must complete one for each contractor
2. If you have a contractor accountant, be sure to send it to them. At SG we will also require a copy of your latest contract so that your personal accountant can carry out a full IR35 status review
3. Run your contract and working practices through HRMC’s CEST Tool (Check Employment Status for Tax) to see what outcome it gives you – chances are your end-hirer / client used this too, so if you can get an ‘outside’ determination from CEST you have a good discussion point
4. Present your accountant’s and CEST Tool status decision to your end-hirer / client which will then begin the ‘client-led disagreement’ process. They then have a total of 45 days to respond to the appeal

How can SG Accounting help?

Tackling any decision by HMRC can be confusing, frustrating and time consuming, and we will always advise contractors to let our team of expert director-level accountants take the stress of IR35 status determinations off their shoulders. Our accountants will complete full contract and working practice IR35 reviews (which are included as standard in our monthly service), to see if there’s anything they can suggest which could produce an ‘outside’ IR35 determination. This evidence is then presented to your client, to help negotiate a better outcome and change in decision.

They will also be with you throughout this process, and ensure every possible step has been taken to make sure you have done everything you can to appeal your original status determination. If you feel like this is the type of expert support you need now and most certainly in April 2021 and beyond, simply get in touch with our team today.