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.
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?
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.
Is HMRC's check employment status for tax tool (CEST) good enough?
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.
What is "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.
Is IR35 insurance necessary?
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.
What is a Status Determination Statement?
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.
How often should IR35 status be reviewed?
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.
The contract has a substitution clause, is this enough?
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.
What our clients say...
-
"I have always been extremely happy with the service you provide both on a professional level and a personal level, so wanted to say a genuine thank you for reviewing all my contracts over the years and all the additional advice you have provided."
Jeremy Fletcher Black Diamond Consulting LtdRead more -
“I engaged Charlie to assess my contract prior to starting at a new client. Charlie was fantastic throughout the process. She demonstrated deep understanding of the relevant legislation and always responded promptly and professionally. As an independent expert her advice and opinion were well received by the end client, who provided an outside status determination. With Charlies input, the end client could demonstrate reasonable care had been taken – a win-win for both parties! I cannot recommend Charlie highly enough."
Tony Ward Statcore LtdRead more -
“I’ve used Bauer & Cottrell for several years and wholeheartedly recommend them to everyone that I work with. They’ve successfully negotiated a whole range of adverse and risky terms out of contracts on my behalf, far more effectively than I could’ve by dealing with the relevant agents myself, and taught me more about the practical side of successfully engaging with clients (outside) of IR35 than any other source of information. Their Contractor Guardian Plus service provides me with the complete peace of mind that I don’t believe is otherwise readily achievable within the means of an independent contractor.”
Adam Williamson Network Guy Consultancy LtdRead more -
“Thank you so much for your really prompt, efficient and calm approach in negotiating changes to the proposed contract with my client, to ensure it correctly reflected working practices. You made the whole process seem so straightforward and Bauer and Cottrell’s reputation provides well deserved reassurance that it’s been done properly.”
Stephen Penfold MTwenty International LtdRead more -
“The Bauer & Cottrell IR35 Review Package I receive through my accountant has been extremely good value and most importantly how/why the review is done; so it is done correctly, thoroughly and the determination is accurate, in line with current legislation. I have been continually recommending Bauer and Cottrell/this approach to my peers. Even now, where the client is responsible for making the determination, Bauer and Cottrell review all the paperwork and examine the actual working practices, to ensure this has been done correctly. Additionally, when checking the supporting paperwork, Bauer and Cottrell have ensured this accurately reflects the determination and actual working practices. With your help we have the right outcome done properly, which for a recent review, the client very much appreciates being able to retain me for a time sensitive/important project and we know that we are compliant. IR35 determination is complex and often misunderstood. Bauer & Cottrell’s expertise and experience ensure a correctly determined outcome.”
Peter IT Contractor, bankingRead more -
“As someone new to contracting and the complexities of the IR35 regulations, I engaged Bauer & Cottrell Ltd to advise me on an agency contract. Throughout the entire engagement their friendly and professional team were a joy to work with. Their specialist consultant (Charlie) was extremely knowledgeable, responding swiftly to all my questions, and quickly negotiated a compliant contract with the agency on my behalf. I’ve since engaged them again for a subsequent contract and experienced the same fantastic and timely service. I would not hesitate to recommend their services to others in a similar position.”
Ben Moss Kaizen Path Consulting LtdRead more -
“I had to consult with Bauer & Cottrell regarding the IR35 status of one of my contracts, and the service they provided was immaculate, with super fast responses, and full support, including assessment, contract templates, and many revisions until the contract was as watertight as it gets. To top it all, the service was pleasantly friendly. I would highly recommend them for anything IR35 related.”
Haitham Seelawi Eva-Ayla Seelawi ML LtdRead more -
You have all been a pleasure to deal with, and extremely helpful and I look forward to dealing with your company again in the future.” “I have nothing but good words to say about you and the team.
Shaun Deeney SD Testing Services LtdRead more
Recommended for you...
IR35 Compliance
Partnership
Our exclusive IR35 Compliance Partner Service, a solution tailored to meet your specific needs in navigating the complex world of IR35 and Off-Payroll compliance.
IR35 Training
Expert training to help you navigate the Off-Payroll rules. Specifically tailored to your requirements with multiple delivery options available.
Contracted-Out
Services Reviews
Do you provide or receive contracted-out services involving contractors? Our Contracted-Out service review establishes obligations and responsibilities of all parties within your supply chain.