LET'S FIND OUT
HMRC introduced IR35 (the ‘off-payroll working rules’ or 'the intermediaries' legislation') in 2000 to tackle what it calls 'disguised’ employment to combat tax avoidance. IR35 was brought about to ensure contractors pay the same levels of tax and national insurance contributions as an equivalent employee who is broadly doing a similar role. It applies to individuals who work through an intermediary like a Personal Service Company/Partnership/etc. providing services to an end client and when the reality of the relationship is such that they would be ordinarily classed as an employee of that end client if the intermediary was not in place.
When IR35 was introduced in April 2000 the responsibility of determining employment status for tax purposes sat with the contractor...
April 2021 is fast approaching, and fundamental changes in the private sector organisations will need to comply with IR35 reforms...
The rules to IR35 are effectively simple but there are exceptions
Businesses who are not compliant by the deadline, run the risk of financial, operational and reputational issues
We have partnered with leading Insurance and IR35 Tax specialist Kingsbridge Insurance to help organisations
No matter where you are in your journey to IR35 compliance, Claremont Consulting will help you choose the right solution that best...
Financial: Face Substantial fines over 50% on top of contractors' pay
Operational: Risk delays to critical projects due to loss of resource.
Legal: Put your company in the firing line for litigation with HMRC or workers
Reputation: Dent your reputation and restrict the flow of off-payroll talent into your business
Awareness: Use IR35 to finally understand the full composition of your workforce, including spend
Change: Treat IR35 as a catalyst to implement a market-leading contingent workforce solution
Attract: Create a competitive advantage by making yourself a magnet for off-payroll talent
Retain: Secure vital existing off-payroll workers or even migrate them to your permanent workforce
Operational & Reputational issues
Business open to extra expense and exposed to risk
Potential tax/ National insurance losses
Changes to workforce structuring
A huge raft of employment legal rights have changed
Increased administrative burden
All workers must be individually assessed to see if they fall within IR35. This is a complex process as there are many different factors at play.