IR35 - Are you ready?
End-to-end solutions for IR35
From 6th April 2021, changes to IR35 in the private sector will mean determining an IR35 status of a contract will shift away from the contractor on to the end-hirer or agency.
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What's happening
Currently, the responsibility of who determines the IR35 status of a contract usually lies with the contractor, in most cases. However, from April 2021, this responsibility will shift away from the contractor and on to the agency, or end-hirer.
Unless the end-hirer is considered ‘small’, they will need to conduct a IR35 assessment and provide this to your agency, if there is one involved. This IR35 assessment will consider whether the current contract is ‘inside’ or ‘outside’ IR35. The actual rules around how to determine the assessment will not change, however since your agency or end-hirer will now be responsible for any unpaid tax on a wrong determination, it could be likely they will edge on the side of caution.
How will this affect you?
The changes to IR35 could affect you significantly. Agencies and end-hirers will now be required to review all active and new contracts to determine their IR35 status. This may see them taking a different view altogether and contracts that you determined to be ‘outside’ are now changed to ‘inside’.
As a result, it is likely that end-hirers or agencies will take the view that reviewing their contractor base is too complicated and time-consuming and may simply determine that all contracts to be deemed ‘inside’. In some cases, they will simply refuse to work with limited company and only allow Umbrella workers.
We have 15 years of experience in the contractor market and have IR35 in-house experts to help guide you through the process. Whether you can continue to work compliantly through your limited company or use our new FLEX switching solution will be able to help you through the changes.
GET YOUR OPTIONS ASSESSED
Don’t delay in ensuring you understand your options. Whether your contract is due for renewal before or after April 2021 knowing what might happen and how this affects you will keep you one step ahead.
FLEX: SWITCHING SOLUTION
Whatever your future status under IR35, get peace of mind now, knowing that our FLEX solution, included in all our packages, allows you to switch between limited company and Umbrella whenever you like.
What should you do now?
Getting prepared early for April 2021 is essential to ensure you, your agency and end-hirer are ready in plenty of time. Don’t wait until it’s too late.
Communication
If your agency, or end-hirer hasn’t been in touch regarding the changes, ensure you start a conversation with them about what they intend to do.
IR35 Assessment
We can help provide an assessment of your IR35 status using our IR35 assessment tool.
Please contact us to see how an assessment might help you.
Introducing FLEX
Included in all our packages, our new FLEX solution means you can switch between limited company and Umbrella as often as you like for one single fee.
Get in touch to find out more about how we can help you with IR35
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IR35 news and articles
Selected articles from our blog regarding IR35 and the upcoming changes due in April 2021.
How to ensure you’ve had a fair Status Determination Statement (SDS)?
With IR35 reforms fast approaching, end hirers and recruitment agencies will now begin conducting Status Determination Statements on their contractors.
As you’ll no longer be responsible for your employment status determination, you need to make sure your end hirers are conducting your role assessment fairly.
The results of your SDS can have a huge impact on how you work and what would be your take-home pay.
Who’s Responsible for your IR35 status?
IR35 reforms are due to be implemented on April 2021. They will mean that the responsibility for determining your employment status will move from you (the contractor) to your end hirer, or agency. It’s important you understand how this may impact you and the criteria you will be assessed against so you can get prepared and remain compliant.
Here are some common misconceptions you should be aware of.
What makes a contract outside or Inside IR35?
The IR35 rules can be confusing so it’s no surprise that myths and misunderstandings arise from time-to-time. Here are some of the common areas of confusion for contractors.
IR35 changes and the FLEX Umbrella solution
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.
IR35 Update: HMRC got another “Red Card” about mutuality of obligation
On May 6th, upper tribunal judges, Zacaroli and Scott gave a key ruling in regards to one of IR35’s most disputable factors – ‘Mutuality of Obligation’. Read the full story
The Off-Payroll (IR35) Reform Delayed Until April 2021
The legislation will now be reintroduced in April 2021. This is a welcome decision in light of the worrying health and economic challenges we now face, but we must stress that it has been made clear that this is only a delay and not a cancellation.
Free Umbrella solution for all our PSC clients
If you’re affected by IR35 changes and need to switch to Umbrella, we can help.
Our new PSC/Umbrella package means you can enjoy the best of both worlds, toggling between limited company and Umbrella working, where appropriate. What’s more, our Umbrella is free to use when we look after your PSC accounts. It’s a great way to keep your options open.
IR35 Rules – What should you do if your contract is inside IR35?
If you are a contractor working on an assignment which is considered to be outside IR35 now, you may find this is no longer the case when the new IR35 rules come into force in April. This is no reason to panic, but it is important to weigh up your options.
Off-payroll reforms: Why you shouldn’t close your company, just yet!
Although we are waiting for the new government to give us clarity on whether the off-payroll reforms will come into effect from 6thApril 2020, it is important to understand what things need to be considered when the decision is confirmed.