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Professional IR35 Status Determinations:

Real Reviews by Real Experts

Whether you’re a client, consultancy or agency, it can be easy to feel overwhelmed with the burden of the Off-Payroll Working rules. If you want peace of mind for your business, you should consider Bauer & Cottrell’s IR35 Status Determination Service.

HMRC audits & investigations can last for years.  Getting things right from the outset is therefore critical, and outsourcing your status determinations to a specialist acts as a proactive defence, demonstrating ‘reasonable care’ and safeguarding your business against the potential financial liabilities associated with non-compliance.

Our professional and comprehensive IR35 Status Determination Service is designed to help engagers of contractors navigate the complexities of the off-payroll working rules, minimise risks, and ensure effortless Off-Payroll Working rules compliance.

Compliance with the Off-Payroll Working rules with Bauer & Cottrell compliance specialists

Why choose our IR35 Status Determination Service?

Comprehensive

Our IR35 specialists will perform a detailed review of the working practices, business features, and written contract, considering current case law without tools or automation.

Easy

All information is conveniently submitted through our online portal, ensuring a streamlined process for you and your contractors.

Fast Turnaround

We turn the IR35 status determination around within 2-5 working days in most cases, and can accommodate urgent reviews when required.

Reliable

You can rest assured that with our experience and track record of winning IR35 cases, you can completely rely on our IR35 determinations.

Key Features & Benefits of our IR35 Status Determination Service

Thorough & transparent review: Our dedicated IR35 specialists will conduct a thorough review, which is considered alongside up-to-date case law , resulting in a robust IR35 status determination that you can fully rely on.

Effective communication involving all parties: Our team liaises with both you and your contractors, providing a platform for further information and clarity, ensuring all relevant details are considered, and all relevant parties involved.

Tailored Status Determination Statements: We produce a written status determination statement (SDS) tailored to the specific engagement, in full compliance with off-payroll working requirements.

Contract amendments: If appropriate, we provide assistance in making contract amendments to align with the working practices, ensuring your written terms fully support the status determination.

Demonstrate “Reasonable Care”: Our assessment service helps you demonstrate reasonable care in your IR35 compliance. This is crucial  in the event of an HMRC investigation.

Clarity for all parties: We prioritise ensuring that you and your contractors fully understand the reasoning behind each determination. We remain on hand to assist beyond issuing the SDS, ensuring you and your contractors have full clarity over the decision.

Dispute Resolution Support: We will offer support and guidance in the unlikely event of appeals raised by your contractors regarding their IR35 status determination, helping to facilitate resolution.

Customised Solutions for
assured IR35 compliance

Whatever your Off-Payroll needs, we’ve got you covered.

We understand that every engager’s circumstances are unique and we tailor our solutions to meet your specific needs. Whether you’re a smaller business or a large organisation, we provide customised solutions and resources that align with your organisation’s size, industry, and contractual arrangements.

Our client’s requirements range from ad-hoc assessments or dealing with only tricky cases, to managing all contractor determinations on a fully-outsourced basis. Our straightforward, fixed-basis fees are competitive and we offer discounts based on volume and retainer packages, with no minimum time commitment.  

Why choose B&C?

Team of IR35 specialists smiling in a meeting

With our IR35 Status Determination Service, you can work confidently, knowing that you are well-prepared to handle any IR35-related challenges that come your way.

Read more about our history and what makes us stand out from the rest.

  • We are one of the UK’s leading and most reputable IR35 specialists, our experts having over 20 years of hands-on experience working with the IR35 / off-payroll working legislation. During this time, we have assisted thousands of contractors and businesses in successfully managing their IR35 compliance.
  • All reviews undertaken within our IR35 status determination service are performed personally by real and proven IR35 experts – we don’t use tools or automation and most of our experts are ex-HMRC compliance staff, all with an in-depth working knowledge of up-to-date IR35 case law.
  • We have an unprecedented track record of winning 100% of the hundreds of HMRC IR35 investigations we have defended.
  • Independent and impartial – which helps ensure objectivity, fairness and accuracy, ultimately benefiting both you and your contractors.
  • The historical reliability and integrity of our work and advice means we have never needed to back our services with IR35 insurance.
  • We genuinely care about the success of your business and are committed to assisting you in achieving the strongest possible position to demonstrate the ‘reasonable care’ required by the off-payroll rules.

The majority of IR35 status determinations we see made using HMRC’s Check Employment Status for Tax tool (CEST) would not demonstrate reasonable care. Here’s why:

  • CEST is  extremely easy to get wrong – in a lot of cases it is completed without the user reading the vast amounts of accompanying guidance resulting in misinterpretation of the questions. 
  • It is not aligned with up-to-date IR35 case law and omits to consider the key issue of mutuality of obligation. 
  • The right of substitution question is too weighted and widely misunderstood.
  • It does not produce a determination in all cases – approximately 20% of outputs are undetermined, leaving the user unsure of what to do next. 
  • It does not allow for input from all relevant parties.
  • HMRC stipulate that they will only stand by a result that is “wholly accurate”.

Don’t put your compliance at risk by relying on CEST – by leveraging our expertise and deep understanding of the legislation, we help you minimise the risk of misclassification, ensuring full compliance and demonstrating your commitment to taking reasonable care.

Reasonable care under the off-payroll working rules, or IR35, refers to the level of diligence and thoroughness businesses must exercise when determining the employment status of a worker. This is a critical aspect to ensure compliance with HMRC regulations and to avoid potential financial and legal repercussions.

Key components of Reasonable Care:

 

  • Thorough Assessment with careful consideration for the contractual terms and actual working practices in each case, and not simply applying blanket determinations.
  • Documenting the process, maintaining detailed records of the steps taken during the assessment and the rationale behind the IR35 status determination for each worker.
  • Effective communication, ensuring the Status Determination Statement is passed to the worker and any other relevant parties, setting out the status decision and reasons behind it.
  • Monitoring changing circumstances, and any situations arising which would warrant a re-assessments.
  • Seeking advice from experts or specialists when necessary to ensure a comprehensive understanding of the rules.
  • Staying updated with any changes in legislation or HMRC guidance to maintain compliance.

Repercussions of Not Taking Reasonable Care:

 

  • Tax Liability: if HMRC determines that reasonable care was not exercised, your business could become liable for unpaid tax and National Insurance contributions (NICs).
  • Penalties and Interest: HMRC may impose significant penalties for failing to take reasonable care, in addition to any backdated tax and NICs. Interest charges may also apply to late payments.
  • Reputational Damage: Non-compliance with off-payroll working rules can damage your business’s reputation with clients, workers, and HMRC. This can negatively impact future business opportunities and relationships with contractors.

Our comprehensive and reliable IR35 status determination service, ensures that reasonable care is taken at every step to comply with HMRC regulations and safeguard your business from potential risks.

You can read more about what “reasonable care” means in our guide.

We have never needed to insure our work and it is not typical practice to insure against legislative compliance risks. If you take reasonable care in assessing your workers’ status, you can avoid most IR35 risks. Properly checking and documenting whether your contractors fall inside or outside IR35 and following HMRC guidelines will help keep your business compliant without needing insurance. Our IR35 Status Determination service helps you to demonstrate you have undertaken a robust and accurate assessment, so you can stay protected and save on unnecessary insurance costs.

 

An IR35 status determination statement (SDS) is a formal document which confirms the IR35 status of an engagement and needs to be provided to the worker and any other party you contract with above them no later than the date of the first payment.

The SDS should clearly outline the reasons for the determination and the evidence used to make the decision. It should include details about the working relationship, the nature of the services provided, and any relevant contract terms. The SDS must be communicated to the contractor and any other parties in the supply chain.

All assessments undertaken within our IR35 Status Determination Service come with a robust, comprehensive SDS.

IR35 status should be reviewed regularly, especially if there are changes in the working practices or contract terms. It is good practice to conduct a review at the start of each new contract and periodically throughout the engagement to ensure you are meeting your reasonable care requirements.                                   

While right to substitute is an important factor, IR35 status is never determined by one element alone. Courts and HMRC focus on the entire working relationship, considering factors like control, whether the contractor is genuinely “in business”, mutuality of obligation (MOO), and financial risk.

A substitution clause that exists only on paper, without being exercisable in practice, carries little weight in HMRC investigations or tribunals. 

Read our guide on the right of substitution to learn more. 

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