In this week’s Money Matters – Ask the Experts column, from Goldwyns Accountants, based in Southend, Sam Blundell ACA, a chartered accountant and a manager at the company, provides his thoughts on ‘disguised employment’ issues.

I am currently a contractor working for another business through my own limited company. I keep hearing about intermediaries changes but it’s not really clear what is actually happening. Should I be worried?

Sam Blundell answers:

Coupled with anti-avoidance legislation and making tax digital, it’s clear that contractors and ‘disguised employment’ are very much a hot topic for the Government at the moment.

Interestingly the IR35 legislation has been around for nearly two decades and yet it is still considered that there is ‘widespread abuse’ of disguised employment contracts. In more recent years there have been persistent attacks on this area with supposed clarification through employment status tools, legislative changes to travel and subsistence expenses and of course the employment intermediaries reporting requirements. Most recently, we are now seeing the hurried introduction of the off-payroll rules for public sector workers (which applied from April 2017).

here is no denying this area remains squarely within HMRC’s sights. I assume from your question that you are not currently working within the public sector and therefore the latest changes are not likely to affect you. However, once the dust has settled on this particular piece of legislation, it is not unreasonable to assume the net may be cast a bit further afield.

However, the core legislation has been in place to attack these cases for many years but, with limited resources including reduced operational sites, it rather begs the question of who will actually be left to implement these tools?

General opinion therefore remains much the same as before – if this area presents a risk to you then look to your arrangements and contracts in the first instance. Make sure you are not falling foul of any obvious pitfalls. Eroding any of the three pillars of employment – personal service (right to a substitution); control; and mutuality of obligations – is a very good starting point.

If you are sailing close to the regulations then put these proper foundations in place as they will probably form the bulk of a defence further down the line. There is a (anonymous) contract review service available for some degree of certainty if that might be of use but don’t forget actual working practice may override written contractual conditions if there is a clear disparity.

The next column from Goldwyns Accountants will appear in the Echo on Tuesday, June 27. To find out more visit goldwyns.co.uk or call 01702 351412.