Independent management consultants typically have a stronger IR35 position than many other contractor types. Engagement-based work, clear deliverables, genuine substitution and multiple clients often support an outside IR35 case. But the position is not automatic and working practice still needs to match the contract.
The single most important distinction in management consulting IR35 is whether you are engaged on a specific statement of work with defined deliverables, or whether you are essentially providing your time on demand to fill a capacity gap. The former is a much stronger outside IR35 position. Many consultants operate somewhere between the two, and the contract and working practices need to reflect the genuine nature of the engagement.
Working for multiple clients simultaneously is one of the clearest indicators of genuine self-employment. If your consulting practice has several active clients at once, this is a significant factor in your favour, provided the engagements are genuine and not simply a single embedded role with a side project.
At the day rates typical in strategy and management consulting, corporation tax planning (including the marginal relief band, pension contributions from the PSC, and the timing of dividend extraction) has a very significant impact on your overall tax position. A generalist accountant without consulting experience will miss the nuances.
We review your engagement letters and statements of work against IR35 criteria. If you are engaged on a deliverables basis, we help you ensure the documentation reflects that clearly and consistently.
For consultants with multiple clients, we plan across the portfolio, timing income, allocating expenses, modelling dividends and pension contributions to minimise the overall tax burden across a variable-income year.
PSC accounts, CT600 and self assessment for a management consulting practice, handled accurately and reviewed properly with you before submission.
Book a free call. We will talk through your IR35 position, your structure and whether there is anything worth changing. No hard sell, no obligation.