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IR35 changes and the FLEX Umbrella solution

by | Dec 3, 2020 | IR35

IR35 changes

From April 2021, the proposed changes to IR35 legislation could mean you are affected if you are working through an agency or directly with an end-client. Delayed from April 2020, due to Coronavirus, it looks likely that the Government will press ahead with enforcing the changes without any further delays.

After the change, agencies and end-hirers will be fully responsible for assessing whether a contract is inside or outside IR35. This means you will no longer be responsible for deciding your IR35 status and, as a result, agencies and end-clients will have their own opinions and risk factors to consider.

This could lead to changes in contract statuses over the next few months and we may see contracts being altered or even terminated with the only practical alternative is Umbrella working.

However, you do have a right to challenge their findings if you feel that their assessment is incorrect, or they have used a blanket policy.

What if IR35 affects you?

Agencies and end-clients are starting to consider what they will be doing next year. Some will already have started communicating with their contractor base, whilst others will sit tight and see how things pan out over the coming months.

Regardless of your agency or end-clients position, ensuring you understand and aware of all available options is something we would strongly advise doing now, otherwise, this could lead to stress and hassle closer the deadline.

FLEX will provide you with the flexibility of being able to switch seamlessly between your limited company and Umbrella working anytime you need and all for the same monthly fee.

Your accountant at Clever Accounts is the best person to discuss the proposed changes and whether this may affect you. They will be able to discuss your specific circumstances and provide guidance on options.

How can Clever Accounts help?

One of the options you may have to consider is Umbrella working. In fact, your agency or end-client may force you on to this way of working.

To help ease the switch to Umbrella working, we have created a new solution called FLEX.

FLEX will provide you with the flexibility of being able to switch seamlessly between your limited company and Umbrella working anytime you need and all for the same monthly fee.

Working with our sister company JSA, who is an accredited Umbrella solution provider, we can ensure that you are up and running quickly whilst maintaining your current relationship with your accountant all the time.

Some of the benefits of our FLEX Umbrella solution:

  • Switch seamlessly between limited company and Umbrella
  • No restrictions on the amount you switch
  • You are automatically enrolled in FLEX
  • No additional costs or fees
  • You retain your own dedicated accountant for unlimited support
  • JSA are FSCA accredited and have 1000’s of relationships with agencies

    What to do now

    Getting prepared for the changes as early as possible will ensure the transition is smooth as you will fully understand what actions you need to take.

    If you are affected now by the changes, speak with your accountant at Clever Accounts and they will help you with any immediate actions needed.

    If your agency or end-client has not communicated yet, please visit our IR35 hub for further information and speak to your accountant about how Clever Accounts and JSA can provide you with an end-to-end IR35 solution.

IR35 - read more about it

Find out what changes are coming, how this could affect you and what we can do to help.


Information for contractors, freelancers and limited company on what help is out there

Our accounting packages

Limited Company

Used by thousands of limited companies and contractors, you get unlimited accounting support and advice, easy-to-use online accounting software all for a single fixed monthly fee. This package also includes our Flex solution to allow seamless switching between a limited company and Umbrella plus free insurance*

Growing Company

Our fully bespoke accounting service for limited companies that are growing or in need of additional services. This package includes a dedicated bookkeeper and payroll solutions for multiple employees together with fully pro-active support and advice and face-to-face meetings via video conferencing.  If you need that extra hands-on service, this is perfect for you.

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Dedicated accountants, online accounting software and 15 years expertise in the market makes us the perfect choice.

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