IR35 FOR CONTRACTORS
Reforms to IR35 in the private sector will see the introduction of the Off-payroll rules in April 2021. Under the current IR35 rules, it’s your responsibility as a contractor to get assessed in order to determine your own IR35 status for each assignment and re-examine your status if your assignment changes.
However, next year this liability is shifting to your end hirer (unless they’re small) and recruitment agency, meaning they now need to balance the financial risks they face with the challenge of retaining their contractor talent pool. If you want to know where you stand before the rules change, our IR35 complete assessment tool will provide you with a reliable Status Determination Statement.
Get your contract assessed for free with our quick, clear, and insurable assessment tool.
When the off-payroll (IR35) rules change in April 2021, your end hirer will become responsible for determining your IR35 status, and your agency may be held liable for any incorrect assessments or unpaid tax.
Your end hirer (unless they are considered ‘small’) will need to conduct a status assessment on your assignment, and issue a Status Determination Statement (SDS) to you and your agency, if there is one in the supply chain. This will determine whether you’re operating ‘outside’ or ‘inside’ IR35, which can affect how much tax you have to pay on your current earnings.
You may already be aware of how your agency and end hirer plan to respond to the IR35 reforms, but if you’re not, then it’s important to start the conversation with them as soon as possible so that you can examine your options. We’re here to help you understand and prepare for the changes.
How will it affect you?
The reforms could have a significant impact on you. You need to determine if your agency or end hirer is using a reliable, insurance backed assessment tool, like the one offered by JSA, to ensure you’re working compliantly.
Following the assessment, you may be able to continue working through your limited company if you remain ‘outside IR35’. However, your status may change from ‘outside’ to ‘inside’. If you’re now classed as ‘inside’, you’ll need to review your working options as its likely you’ll have more tax to pay.
The other issue you may face is some end hirers may decide that it is too complicated to use limited company contractors altogether, regardless of the SDS outcome, and simply consider all contractors as ‘inside IR35’. If this happens, it will be important to review your working options.
HOW WE CAN HELP
Contact us to speak to a member of our experienced team who can guide you through all aspects of IR35 – whether you want to understand more about the reforms, set up your own PSC, switch to Umbrella, or toggle between the two.
With a 30-year pedigree in compliant contractor payments and accountancy, our team can be relied upon to provide you with tailored support to help you navigate through the changes.
Find out whether you’ll remain ‘outside IR35’ with a free sample assessment.
You don’t have to wait until next year to determine your IR35 status. As a contractor, the earlier you’re assessed for IR35 compliance, the more prepared you can be when the reforms come into place in April 2021.
With our IR35 Complete assessment tool, we’ll provide you with a Status Determination Statement (SDS), assessing variables like Mutuality of Obligation, substitution, and supervision to determine if your current roles fall ‘inside’ or ‘outside’ IR35.
We can then help you alter your contracts and working practices so that you can continue to operate ‘outside IR35’ as much as possible. Or, in scenarios where this isn’t feasible, we’ll set you up with our Umbrella toggle solution, providing you with the freedom to switch seamlessly between ‘inside’ and ‘outside’ assignments.
From April 2021, your end hirer (unless they’re considered ‘small’) will be responsible for your IR35 status determination. Until then, responsibility continues to rest with you. Our in-house IR35 assessment tool is a simple way for you to determine the status of your assignments.
Designed with simplicity in mind, our instant assessment provides regular updates and re-assessments where necessary so that when you switch between contracts, or the terms of your contract change, you can be sure that you’re being paid correctly. This allows you to continue to work on contracts that are ‘outside IR35’ as much as possible, while ensuring assignments that are classified as ‘inside’ are dealt with professionally and accurately.
Our Solution: IR35 Complete
With IR35 Complete from JSA, we offer a range of solutions to keep you working in a way that suits you, so that you can be compliant but still enjoy the flexibility of contracting.
It may be advisable to undergo an IR35 status assessment so that you can fully understand your compliance position. That way you can adjust your working practice or look at your options before the reforms are enforced.
Because we support limited company (PSC) contractors and umbrella contractors, we can provide all the services you need under one roof. We can even enable you to take on a mixture of inside/outside IR35 contracts by toggling seamlessly between PSC and Umbrella.
Our Compliant Solutions
Whether your assignment is ‘inside’ or ‘outside IR35’, we provide all the services you need to enjoy the flexibility of contracting whilst working compliantly.
Switch to Umbrella
If you’re ‘inside IR35’, it’s easy to switch to JSA Umbrella. Our specialist team looks after everything, including your taxes and admin, and ensures you’re always paid on time. With these responsibilities taken care of, you can get set up and ready to work compliantly without delay.
Work Compliantly Through Your PSC
We provide all the accountancy services you need to set up your PSC and continue to work compliantly through it. Applicable to assignments that are both ‘inside’ and ‘outside IR35’, we’ll give you unlimited support and advice tailored to your individual circumstances.
Toggle Between Umbrella and PSC
If you’re planning to take on a mixture of ‘inside’ and ‘outside IR35’ assignments, we can help you easily toggle between PSC and Umbrella contracting. With our seamless service, you can enjoy the best of both worlds with the peace of mind that you’re always working compliantly.
CONTACT US FOR MORE INFORMATION
TAKE-HOME PAY CALCULATOR
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Painless and jargon free
A big thanks to Darris Thomas for taking me through the process of creating a limited company and making it painless and jargon free. He was personable, knowledgeable and didn’t mind me asking noddy questions! Excellent customer service. Cheers Darris.
Hannah has been my personal accountant for a year and it’s been a real pleasure to work with her. Highly competent, supportive and extremely helpful.
Keep up the great work!
Download our guide
If you are a contractor and would like to know more about how you could be affected by the upcoming off-payroll (IR35) reforms, please download our comprehensive guide, outlining where you’re liable and how we can help.
IR35 AND OFF-PAYROLL NEWS, ANALYSIS AND EXPERT OPINIONS
If you’re considering starting out as a contractor, read our Guide to Limited Company Contracting to learn how to set up your PSC and make the most of limited company contracting.
IR35 reforms are rapidly approaching and your agency needs to be prepared. We’ve detailed a project plan for you to follow so you’re ready for IR35 by April 2021.
If under IR35, your ‘outside’ contract becomes ‘inside’, you may not want to switch permanently to Umbrella. Our toggle option is the perfect solution. Click here to find out more.
IR35 can be complicated, so it’s important your agency has the knowledge you need to feel prepared. We’ve collated a series of useful articles from our IR35 experts. Click here to take a look.
IR35 can be complex. To help answer some of your questions about IR35 reforms, we’ve collated a series of useful articles from our IR35 experts.
The recent increase in Umbrella’s operating non-compliant IR35 avoidance schemes is concerning for agencies. Click here to find out more.