Are you ready for the new IR35 rules?
31 Jan 2020
The controversial new off-payroll working rules were meant to come into force on 6 April 2020 but will now be postponed by one year until 6 April 2021.
Are you paying your workers via personal service companies or agencies? You will need to operate...
The draft Finance Bill clauses issued for consultation on 11 July include legislation to extend the off-payroll working rules to the private sector from 6 April 2020.
What is IR35?
IR35, or off-payroll working rules, is tax legislation designed to combat tax avoidance by ‘disguised employees’. These are workers who supply their services to clients via an intermediary, such as a limited company, but who would be an employee if the intermediary was not used.
Is your business ready for the IR35 rules?
From April 2021, the off-payroll working rules will be extended to the private sector and the responsibility for determining whether IR35 applies will fall to the organisation that is receiving the individual’s services. The rules, which were due to come into effect in April 2020 but this was delayed due to the Coronavirus outbreak.
Is your business prepared?
If the answer is no, you’re not sure or you don’t fully understand the implications of the IR35 changes, it’s important you seek advice now before these changes come into effect.
What is an IR35 workforce assessment?
Our Tax team are experienced in undertaking tailored workforce assessments to determine your organisations readiness for the IR35 reform. The assessment can help you to understand your new responsibilities as an employer and assist your overall preparation for IR35.
It will include a review of your existing workforce, engagement processes and recommendations for managing the new rules. We can also advise the end contractor on how the rules will impact them.
What are the benefits of our tailored workforce assessment?
- Understand the true impact the new rules will have on your business
- Detailed information to support discussions within your business
- Presented with practical solutions
- Have more time to implement changes to your contractor processes
- Greater expertise available to assist with advice, before specialists become busier
- HMRC may be more favourable with penalties if they do disagree with your contractor status
- Contractor reassurance and retention due to you actively assessing the position early on
By acting now and undertaking an assessment of your contractor workforce you will understand the scale of the challenge to your business. It may provide reassurance and limited IR35 exposure.
As the countdown continues, inaction will only put you at a disadvantage.
Contact our tax team today to see how we can help your business is get ready for IR35.
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