TaxDigit

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The off-payroll working rules, commonly known as IR35, are among the most talked-about areas of UK employment tax. They are designed to ensure that individuals working like employees, but through their own company, pay broadly the same tax as employees.

IR35 off-payroll working rules advice for contractors and businesses from TaxDigit

What Is IR35?

IR35 applies where a worker provides services through an intermediary, usually a personal service company, but would be regarded as an employee if engaged directly. Where the rules apply, income is taxed much like employment income rather than company profits.

Who Decides Status?

For work in the public sector and for medium and large private sector clients, responsibility for assessing IR35 status sits with the client engaging the worker. Smaller clients are treated differently, so it is important to know which rules apply.

Getting Status Right

Status depends on factors such as control, personal service and mutuality of obligation. Careful, well-documented assessments help reduce the risk of disputes and unexpected liabilities under IR35.

How TaxDigit Can Help

Our Guildford-based team helps businesses and contractors navigate IR35 and the off-payroll rules. Contact us for clear, practical guidance.

IR35: UK-Wide Off-Payroll Working Support

IR35 and the off-payroll working rules affect contractors and engagers right across the United Kingdom, not just near our Guildford head office. TaxDigit helps personal service companies and the businesses that hire them UK-wide assess status and stay compliant.

Our chartered certified accountants review contracts and working practices, help with status determinations and manage the payroll consequences when a role is inside IR35. We support clients UK-wide, both remotely and from our Guildford office.

IR35 is rarely black and white. Status turns on the reality of the working relationship, including control, personal service and mutuality of obligation, rather than just the words in a contract. Getting a determination wrong can leave either the worker or the engager exposed to back taxes and penalties, so we look at both the paperwork and how the engagement actually operates before reaching a view.

How we help with IR35

  • Assessing whether an engagement falls inside or outside IR35
  • Reviewing contracts and actual working practices for status risk
  • Supporting end clients with status determination statements
  • Managing payroll and tax where a role is inside IR35
  • Advising contractors on structuring genuinely independent work

HMRC explains the rules here: HMRC guidance on understanding off-payroll working (IR35).

Frequently Asked Questions

What is IR35?
IR35, or the off-payroll working rules, is designed to ensure that people who work like employees but operate through their own company pay broadly the same tax and National Insurance as employees.

Who decides IR35 status?
For most medium and large engagers the client decides status; for some smaller clients the contractor’s own company is responsible. Either way, the decision should reflect the real working relationship.

Can TaxDigit help if I am not based in Guildford?
Yes. We advise on IR35 and off-payroll working for clients UK-wide, remotely and from our Guildford office.

R&D tax relief is one of the most valuable incentives available to innovative UK businesses. It rewards companies that invest in developing new products, processes or services by reducing their tax bill or providing a cash benefit.

R&D tax relief for SMEs claims advice from TaxDigit chartered accountants

What Qualifies as R&D?

For R&D tax relief, qualifying work must seek an advance in science or technology and overcome genuine uncertainty that a competent professional could not easily resolve. Many companies underestimate how much of their day-to-day problem-solving can qualify.

What Costs Can Be Claimed?

Eligible costs typically include staff time, subcontractors, software and consumable materials used in the R&D. Identifying and apportioning these correctly is key to a robust claim.

The Changing Landscape

The R&D tax relief regime has been reformed in recent years, including changes to rates and the merging of schemes. Because the rules continue to evolve, it is important to check the current position before making a claim.

How TaxDigit Can Help

Our Guildford-based team helps SMEs identify qualifying projects and prepare well-supported R&D tax relief claims. Get in touch to make the most of your innovation.

R&D Tax Relief for SMEs: UK-Wide Support

R&D tax relief rewards innovative companies right across the United Kingdom, not just those near our Guildford head office. TaxDigit helps SMEs UK-wide identify qualifying work and make robust, well-evidenced R&D tax relief claims.

Our chartered certified accountants pinpoint eligible projects and costs, prepare the technical and financial narrative and submit claims that stand up to HMRC review. We support clients UK-wide, both remotely and from our Guildford office.

R&D tax relief has changed significantly, with the SME and RDEC schemes now merged for many companies and extra requirements such as the additional information form. HMRC scrutiny has also increased, so a vague or over-stated claim is a real risk. We focus on genuine qualifying activity and clear documentation, giving you the benefit you are entitled to without the exposure that comes from a weak claim.

How we help with R&D tax relief

  • Identifying projects that meet the definition of R&D for tax purposes
  • Calculating qualifying expenditure across staff, software and subcontractors
  • Preparing the technical narrative and additional information form
  • Applying the correct scheme following the merged R&D rules
  • Supporting you if HMRC opens an enquiry into a claim

HMRC explains the current schemes here: HMRC guidance on R&D tax relief and the merged scheme.

Frequently Asked Questions

What is R&D tax relief?
It is a Corporation Tax incentive that rewards companies for resolving scientific or technological uncertainty, either by reducing the tax bill or, for loss-making companies, providing a payable credit.

Does my SME qualify for R&D tax relief?
Many do. The key test is whether your project sought an advance in science or technology and faced genuine uncertainty, rather than simply being new to your business.

Can TaxDigit help if I am not based in Guildford?
Yes. We prepare R&D tax relief claims for clients UK-wide, remotely and from our Guildford office.

Full expensing is a generous capital allowances measure that lets companies deduct the cost of qualifying plant and machinery in full, in the year of purchase. For businesses investing in equipment, it can significantly accelerate tax relief.

Full expensing capital allowances advice on plant and machinery from TaxDigit

How Full Expensing Works

Under full expensing, companies can claim a 100% first-year allowance on qualifying new main-rate plant and machinery. Instead of spreading relief over several years, the entire cost is deducted from taxable profits straight away, improving cash flow.

What Qualifies?

Full expensing generally applies to new and unused main-rate plant and machinery bought by companies. A separate first-year allowance covers certain special-rate assets. Cars and items bought to lease are usually excluded, so eligibility should be checked.

Points to Watch

Because relief is given upfront, disposing of an asset later can trigger a balancing charge. Timing of expenditure and the type of asset both affect the benefit, so planning matters.

How TaxDigit Can Help

Our Guildford-based team helps companies use full expensing and other capital allowances effectively. Contact us to plan your investment tax-efficiently.

Full Expensing: UK-Wide Capital Allowances Support

Full expensing benefits companies investing in equipment right across the United Kingdom, not just those near our Guildford head office. TaxDigit helps companies UK-wide make the most of full expensing and the wider capital allowances available on their spending.

Our chartered certified accountants identify qualifying plant and machinery, apply the right allowance and plan the timing of investment for the best tax outcome. We support clients UK-wide, both remotely and from our Guildford office.

Full expensing is generous, but it does not apply to everything. Cars, assets bought to lease out and certain second-hand or connected-party purchases are treated differently, and disposals later on can trigger a balancing charge. We make sure each item is allocated to the correct allowance, including the annual investment allowance and special rate pools, so your claim is both maximised and accurate.

How we help with full expensing

  • Identifying expenditure that qualifies for full expensing
  • Coordinating full expensing with the annual investment allowance
  • Planning the timing of capital investment for tax efficiency
  • Handling balancing charges on the disposal of assets
  • Allocating costs correctly between main and special rate pools

HMRC explains the measure here: HMRC guidance on capital allowances full expensing.

Frequently Asked Questions

What is full expensing?
Full expensing lets companies deduct the full cost of qualifying new plant and machinery from their profits in the year of purchase, rather than spreading the relief over several years.

What does not qualify for full expensing?
Cars, assets bought for leasing and certain second-hand or connected-party purchases generally do not qualify, though other capital allowances may still apply.

Can TaxDigit help if I am not based in Guildford?
Yes. We advise on full expensing and capital allowances for clients UK-wide, remotely and from our Guildford office.