IR35 expertise and solutions for both agencies and contractors

Our IR35 Complete solution is a holistic suite of services for contractors and agencies to ensure IR35 compliance. We can help you prepare for forthcoming off-payroll reforms. Call us on 01923 257 257Contact us

Off-payroll rules are changing from April 2020 and the Agency / End-hirer will be responsible for any liability.  Make sure you know the rules.

While the actual rules around how to determine IR35 will not be changing – outside now still would be outside from April 2020, the legislation around who is liable has.

This means that responsibility for determining a contractor’s IR35 status will switch from the contractor to the agency, in the first instance, but could be escalated to the end-hirer.

A good assessment process is imperative for end hirers and employment agencies in preparation for the reforms to off-payroll (IR35) in the private sector, due in April 2020

This is because the reforms would mean that responsibility for determining a contractor’s IR35 status will switch from the contractor to the end hirer whilst employment agencies will be liable in the first instance for the payment of unpaid taxes.

This is why it’s so important for end hirers and employment agencies to work together to ensure robust assessment procedures.

What is IR35?

IR35 is tax legislation designed to prevent contractors and freelancers from providing services via an intermediary, such as a limited company, but who would normally be classed as an employee if that intermediary did not exist.

These types of workers are also known as disguised employees by HMRC. If caught by IR35, you will end up paying income tax and National Insurance contributions as if you were an employee.

As a contractor, you will need to ensure you are compliant with the new rules. This is made more difficult as HMRC do not make it easy to distinguish between contractors and employees and there are a variety of questions you need to answer to get a decision.

The 3 basic principles

Control

What control does the worker have over the client to determine how, what and where the work is completed?

As an independent supplier you should clearly not be ‘controlled’ by your client as if you were one of it’s employees and thus need to be able to determine how, what and when you work as much as possible.

Substitution

Does the client specifically need a personal service from the worker or could a substitute be sent in their place?

This is invariably the first thing any IR35 review will consider and whilst many agency contracts will include such as clause, they can be constructed badly.

Mutuality of obligation

If the end client is obliged to provide the member with work to carry out on an ongoing basis and the member has an obligation to accept and carry that work out, this can show the existence of ‘mutuality of obligation’ between the member and the end client.

An existence of ‘mutuality of obligation’ can indicate the worker may not be self-employed and the relationship may be more employment.

How can JSA help with IR35 and Off-payroll?

Our experts at JSA understand that IR35 is a complicated and confusing piece of legislation and that frequently, it’s based upon judgement and how the rules are applied.

Our specialists have the skills, people and expertise to navigate around the legislation and how these rules may change in the future.

 JSA can offer a free unbiased consultation and unlimited IR35 compliance reviews as part of our comprehensive plus packages with a refresher every six months to give you complete confidence and piece of mind.

Our IR35 specialist team will help review and assess your status

Contract Review

IR35 contract review and risk assessment service by expert, experienced accountants.

IR35 Advice

Consultation on IR35 status and how that might impact you or your business.

Future Planning

How might the introduction of the new off-payroll rules affect you in 2020.

Bespoke Calculations

Bespoke take home pay calculations  depending on whether you are inside or outside IR35

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