Category: Employment Law, Taxation and Legislation for Contractors

Freelance contractors working on several projects for the same client should not be affected by IR35 regulations, it has been suggested.

Professional contractor body PCG said HM Revenue & Customs (HMRC) should only be concerned with the nature of the arrangement, not its duration.

Working on separate projects as a freelance contractor for the same client is not the same as ongoing work, the PCG explained.

"HMRC must prove that personal service, control and mutuality of obligations (the expectation that work will be offered and accepted) existed in the engagement," it commented.

Contractor accountant firm Brookson also commented on this issue, with managing director Martin Hesketh highlighting the need for contracts to be in place on each project.

He urged freelance contractors to ensure all agreements are consistent with working practices and accurately reflect the position as an independent contractor with the client, regardless of several projects being undertaken.

Posted by Daniel Frost