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.
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
Complete the form and an advisor will get in touch as soon as possible
IR35 news and articles
Selected articles from our blog regarding IR35 and the upcoming changes due in April 2021.
How to reduce your IR35 risk
In the light of HMRC's recent updated and 'clarified' advice on IR35, Abbey Tax, a leading authority on IR35 cases, has also provided some key tips for contractors. We summarise them in this article as follows: There...
IR35 and the impact of working practices
Although the written terms within a contract are very important in assessing any potential IR35 issues, there is another aspect which needs to be factored into the assessment and that is the working practices between...
IR35 & Share Incentives
In certain circumstances, contractors are offered shares by their end client as part of the contract terms and of how the payment for the contractor's services is structured. The shares may be offered as an...
House of Lords PSC / IR35 Inquiry Recommendations
The House of Lords inquiry into the use of personal service companies ('PSCs'), those limited companies used by freelance contractor and consulting businesses, has given its verdict. In summary, it...
IR35 / Personal Service Company Round-Up
Following the conclusions announced recently, by a leading law firm, that the forthcoming "Onshore employment intermediaries: false employment legislation" (proposed in the Finance Bill 2014), will not affect personal...
Lords PSC Select Committee – IR35 worth £550m a year
Following on from HMRC's disclosure, last year, that it had increased receipts from IR35 investigations to £1.1m in 2012/13, evidence by Rowena Fletcher, an official responsible for Employment Status at the Revenue...
IR35: Common misconceptions
IR35 is vague to say the least. It's also complex and bewildering for most, including some accountants! Although the internet provides a wealth of information on the subject, how do you know whether this...
IR35 Explained: the basics
In simple terms, IR35 is designed to stop contractors working as disguised permanent employees. The legislation means that HMRC can tax some contractors as though they are employees of their clients....