IR35 changes to legislation mean that from next week, 6th April, in the private sector it will be the responsibility of the end-user client to ensure that contractors are compliant with IR35 legislation. Those businesses who aren’t compliant with the new rules could face large tax bills and penalties.
If you haven’t already you need to :
Assess which “off payroll” workers you have.
Analyse the relationship with each, what agreement applies, what and how are they paid, exactly what is it they are doing and how is the relationship managed and what 3rd parties are included in the chain.
Apply the employment status test for each freelancer. (firstname.lastname@example.org for more detail here if required)
Implement policies to ensure determinations are passed down the chain, ultimately to the freelancer. Allow the freelancer to challenge determination and to ensure payments are taxed correctly.
IF YOU ARE CURRENTLY A CONTRACTOR LOOKING FOR MORE INFORMATION ON HOW THIS MAY EFFECT YOU…
HMRC have provided a handy factsheet for contractors to get ready for the upcoming IR35 changes on April 6th
You can download your copy here
If you need any further advice on anything in terms or IR35 and how it may effect you as a client or a candidate feel free to get in touch!