Question 1

Do I need a contractor accountant based in London?

Accepted Answer

No. We act for London contractors entirely remotely, across the City, Canary Wharf, the West End and every borough. IR35 contract reviews, status determination statement checks, limited-company accounts and self assessment are all handled online with secure document sharing, so there is no need for a local high-street office or face-to-face meetings. What matters is specialist contractor and IR35 expertise, not a London postcode.

Question 2

My City client gave me a blanket inside-IR35 determination. Is that valid?

Accepted Answer

Not necessarily. A status determination statement must reach a conclusion with reasons taken with reasonable care for your specific engagement. Several large London banks and insurers applied inside determinations to whole categories of roles after April 2021 without individual assessment, which can be a failure of reasonable care and can leave the client as the deemed employer. You have a client-led disagreement process and the client must respond within 45 days. We review the SDS, your contract and your actual working practices and support the disagreement where the inside finding does not hold up.

Question 3

Do the raised small-company thresholds mean my London client is now out of scope of off-payroll?

Accepted Answer

Almost certainly not. From financial years beginning on or after 6 April 2025 the small-company thresholds rose to £15m turnover, £7.5m balance sheet and 50 employees, and a client must meet two of the three in two consecutive years. Because of the relevant-financial-year lag, the earliest a previously medium client can drop out of Chapter 10 scope is 6 April 2027. In practice London's banks, insurers, consultancies and large tech firms are far above the limits regardless, so for 2026/27 you should assume your medium or large London client is still in scope unless they confirm otherwise.

Question 4

Should a London contractor use an umbrella or a limited company in 2026/27?

Accepted Answer

It depends on whether your engagements are inside or outside IR35 and on your day rate. For genuinely outside engagements a limited company is usually more tax-efficient even after the April 2026 dividend-rate rise to 10.75% and 35.75%, because the employer-pension route and the salary and dividend mix still beat PAYE. For inside-IR35 or low-margin work an umbrella is often simpler. From 6 April 2026 the agency or end client is jointly and severally liable for an umbrella's PAYE, so use an accredited, transparent umbrella. We model both honestly with your actual figures rather than pushing one route.

Question 5

I move between several London clients in a year. How does that affect IR35?

Accepted Answer

Each engagement is assessed on its own facts, so you can be outside IR35 on one contract and inside on another in the same tax year. Working for a small client (or a wholly overseas client with no UK presence) keeps status with your PSC under Chapter 8, while a medium or large client puts you in Chapter 10 with the client deciding. We track which regime applies to each engagement and make sure the inside-IR35 income is not taxed twice when it reaches your company.

Question 6

What expenses can a London contractor still claim under IR35?

Accepted Answer

For outside-IR35 work through your limited company the usual business expenses apply: accountancy fees, professional indemnity insurance, equipment, an employer pension contribution (the biggest lever), and business travel to a temporary workplace at 55p per mile for the first 10,000 miles from 6 April 2026, subject to the 24-month rule. For inside-IR35 engagements home-to-client travel is generally not deductible and the 5% expenses allowance is abolished under Chapter 10, so the planning focus shifts to pension contributions. We set the mix correctly for each engagement.

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