ECH13300 - Particular Occupations: IR35 Service Company - Review
RIAT will identify certain reviews related to the IR35 legislation. The majority of the employers affected will
- be companies with just one or two directors and
- have home to work and other personal expenses as a particular feature of the review.
Other potential IR35 cases may be identified during an ECR.
The ECO should
- complete all the relevant pages of the ECR2000 and the ECR2000 IR35 supplement
- see ECH13350 re the deemed payment calculation
- check that the appropriate distinction has been made between the company's and the director's financial affairs
- make it clear any questions asked are
- for the purpose of establishing the correct status in relation to the Service Company legislation
- about the entries on the employer's end of year returns and
- not about entries on the company tax return or individuals' income tax returns
- report any irregularities as indicated at ECH13340.
The fact that the legislation applies to a particular engagement
does not mean that it necessarily applies to all engagements.
ECOs are not expected to undertake detailed analysis of
contracts in IR35 work (this should be done by the Status
Inspector) but the ECO should
- review the contracts in place to ensure
- the circumstances in which the duties are undertaken for the client are examined and
- they are not just accepted at face value.
In many industries, particularly where an employment agency is involved, standard agreements are used. They may not contain enough information to show whether the IR35 legislation applies. The ECO should
- check that any agreement is adhered to and
- find out what the parties to the relationship understand are the true terms and conditions where
- the agreement is not adhered to or
- there is insufficient information within the agreement.
Where employment status is an issue
- see ECH13345.
- (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
- (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
