IR35 applies to the contract and not to the contractor. A contractor can work simultaneous contracts both inside and outside IR35.
If a contractor's customer (or potential customer) has defines a role to be subject to IR35, then there is little the contractor can do about it. If the role is taken on the customer will pay tax and NI for the contactor according to PAYE rules.
Even if the customer has listed the role as outside IR35, it doesn't mean that the contractor is free to take the gross and account for taxation as a supplier. HMRC can deem that the role is subject to IR35 and require that the contractor pay tax and NI as though they were an employee of the customer.
In order to avoid this the contactor first has to have a role where the customer has deemed it to be outside of IR35 and also to consider -
- the worker’s responsibilities
- who decides what work needs doing
- who decides when, where and how the work’s done
- how the worker will be paid
- if the engagement includes any benefits or reimbursement for expenses
If the above do not fit with the HMRC view of the role in any subsequent test of the situation, the contractor will be subject to investigation and possible correction of taxation, plus penalties.
I have known many contractors suffer hell and eventual bankruptcy because they ignored this simple set of rules.
Play by the book and survive - mess with the rules and risk disaster.
A good contractor can demand a rate that fits what they do without bending any rules.
