Changes to HMRC IR35 legislation will apply to the private sector with effect from April 2020. Understanding the complex IR35 legislation may have punitive consequences if HMRC do not agree with your status assessments. Organisations must prepare flexible workforce staff and get to grips with tests in order to remain compliant, either inside or outside IR35 rules. The Government are encouraging business to start planning and prepping now to avoid last minute panics.
IR35 PRIVATE SECTOR REFORMS. From April 2020, every medium and large private sector business in the UK will become responsible for setting the tax status – or as it is more commonly known, IR35 – of any contract worker they use. This controversial and unpopular move will also see these organisations – widely referred to as ‘engagers’ – carry the liability should HM Revenue & Customs decide it has made any incorrect assessments. The IR35 rule, also known as the off payroll working rules, are not as clear as they ought to be given the size and importance of the independent workforce. When sitting inside IR35, a contractor is deemed ‘employed for tax purposes’, which means they are required to pay income tax and national insurance contributions, just as an employee would. From April 2020, every medium and large private sector business in the UK will become responsible for setting the IR35 status of any contract worker. Many contractors do not receive employment rights for the additional tax they are made to pay. Businesses need to prioritise accurate decisions and avoid panicked determinations.
We provide IR35 Consultant and to ensure your are IR35 Compliant with the new IR35 Private Sector reforms. We provide Business Support IR35 Reforms including preparing for the IR35 Changes and also IR35 Project Management.