Employment Business

Under the new regulations can contractors really claim their contracts are IR35 compliant?

Under the new regulations, an agency must declare if it is acting as an employment business for a role.

If it makes such a declaration (i.e. in effect states it is supplying a person to work under the supervision of others) and then draws up contracts claiming the client has no control of the contractor (i.e. as part of an IR35 compliant contract), would the agency be guilty of fraud?

It seems the agency would be drawing up contracts that do not reflect reality, contracts that could be used by a contractor to claim IR35 compliance and then defraud the IR (and UK plc) of tax.

It seems to me that if an agency declared it was acting as an employment business for a particular role, then it could NOT issue an IR35 compliant contract thereafter.

It seems that now most contractors operating under their own companies would be caught by IR35.

--

Mark Brown