Are you an employee in all but name?
Don’t get caught out by IR35…
Off Payroll IR35 Private Sector Reform changes are coming
As a contractor, you need to understand the proposed changes and know the risks associated with the new rules in order to avoid getting burnt by the time April 2021 comes around.
Up to now, you’ve been responsible for determining your employment status. From April, this responsibility will fall with your end client or agency.
Not ready? You’re in safe hands. Energy Jobline have an exclusive partnership with Workr Group to help you understand the proposed changes, what they mean for you, and how to get prepared.
FAQs for Contractors
What is IR35?
IR35, also known as the Intermediaries Legislation 2000, is tax law designed to prevent contractors (and the organisations engaging them) from misrepresenting their employment status for tax purposes.
Specifically, businesses that use contractors claiming to be genuinely self-employed that provide services via a ‘One Man Limited Company’ (also known as a ‘Personal Service Company’ (PSC)) when, in reality, they are operating as a disguised employee.
Who is affected?
Any medium or large business that uses contractor freelancers. Specifically, those that provide services as a One Man Limited Company or PSC despite operating as an employee in everything but name.
Why is the legislation changing?
The government believes that a large number of contractor freelancers and the organisations that use them are still exploiting the system by engaging services through limited companies to avoid the correct levels of National Insurance Contributions (NICs) and tax.
What is the change?
Currently, it’s the responsibility of the contractor to determine whether they are inside or outside IR35. However, from 6th April 2020, this responsibility lies with the engager (you) in the first instance and fee payer (either you or your chosen agency) in the second.
How can I protect my business?
Start by determining whether or not contractors who work for you are inside or outside IR35 legislation. Workr can support you in this determination by conducting IR35 assessments on each of your contracts.
If any of your contractors’ contracts are deemed inside IR35, the Workr Group can advise you on pay options. One of these is a compliant umbrella model that rewards contractors with benefits usually reserved for employees, helping you attract and retain top talent.
We’ll help you make the contractual or other changes you need to work in the most tax-efficient way for you.
All Of This, And More
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Tax rebate claims made on your behalf to maximise your self-employment benefits |
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+44 (0) 161 676 4859
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