In preparation of upcoming changes to IR35 legislation, we are working with our partners to ensure we work compliantly in line with HMRC guidelines.
We will also be working pro-actively with you, as Ltd. Company contractors to give you the support needed to manage changes and minimise any resulting effects.
What is IR35?
IR35 is a piece of legislation that tackles tax avoidance by workers, and the firms that hire them, who are supplying clients via an intermediary, such as a limited company, but who would be an employee if the intermediary was not used.
What is changing?
IR35 is not new, but there will be revisions to the guidelines and who is responsible for making sure the rules are followed. A stricter set of rules to better understand how you work on each site and a ‘determination statement’ to confirm this, is now mandatory.
Also, whereas previously it was you, as a limited company contractor, who was responsible for determining your status within the rules, this now falls with the end client with financial risk also to the company making payments to you.
What happens next?
The changes will not be officially implemented until April 2020; however, we will be working over the coming months to get ready for those changes. We have already enlisted the help of our expert partners to better understand our requirements as a business and determine a process to support our current limited company clients that ensures compliance in line with HMRC guidelines.
If you would like to discuss any aspect of IR35 please contact the office and ask for any Senior member of staff.