Tax Tip Week 24 – Keeping the right evidence is important outside of IR35
If you are accounting for your contract outside of the IR35 legislation it is vital to have supporting evidence for each and every contract.
The information that you need to collect can take some time to put together so it's advisable to be proactive and not wait until HMRC want to carry out an inspection.
It is important to remember that each contract is unique and needs to be decided on its own merit.
All the evidence that you collect should be retained for 6 years after the completion of each contract.
It is also important that you write letters of ‘confirmation of real arrangements' to both the agency and end client to support your employment status claim.
Please refer to our guidance on IR35 for further information.
This subject is covered in our short video presentation - IR35 - How to Manage your Proof and Evidence - part of our IR35 series of videos at www.bfca.tv