IR35 is also referred to as off-payroll working, its designed to assess whether you, the contractor, are a “disguised” employee for tax purposes. Originally in force since 2000, changes have been made in recent years, first effecting the public sector in 2017 and now the private sector in 2021.
WE HELP
We can help you through the CEST tool and review against your contract to ensure its on the side of IR35 you expected so there are no nasty surprises.
As of 6th April 2021, medium and large businesses in the private sector will be in charge of setting the IR35 status of contractors. When working with a company that HMRC considers ‘small’ in the private sector from April 2021, contractors will remain responsible for setting their IR35 status and all of their taxes. You can use the CEST tool designed by HMRC to help employers and contractors determine IR35 status.
Businesses (end-clients) will be responsible for assessing an individual’s employment status. The reform will not apply to the Small Businesses, only to Medium and Large-sized. This means that if you are a small business employer, the contractors themselves still remain liable for ensuring they don’t fall under IR35.
We work with you to assess the potential financial and operational impact of these changes and identify areas of the business where there may be more risk. Our team can assist in tightening up contacts and ensuring that they are meeting the tax requirements for you.
