by Resourcing People
With the IR35 reform deadline date of 6th April almost upon us, we’ve been receiving many enquiries about our online status review tool - and how it can help offer a robust and reliable solution to clients.
First let’s clarify what IR35 is:
First introduced in April 2000 IR35 is an aspect of tax legislation which essentially allows those working through an intermediary (like a Ltd. company, for example) to pay reduced tax and NI contributions. This works because they receive a low salary, with dividend payments.
HMRC has determined that a number of these individuals are actually working as employees, or in roles which equate to such, rather than as contracted partners. These ‘hidden employees’ are using the legislation as a loophole to avoid paying taxes at a fair rate.
This has led to the IR35 Reform, which will be active from April 6th 2021, which will see the employment status of contractors determined by their end client.
What does this mean for you, and for your business?
It could very well mean investigations, significantly higher payments, changes to your employment status and increased costs for employers seeking contractor support.
The benefit of working with experts in employment and recruitment, both for sourcing permanent staff and for sourcing and embedding contracted teams for projects of any size, is our insight and knowledge of this legislation. We bring reassurance and protection – for you as the employer and for the contractors you are partnered with – offering a variety of solutions that meet your IR35 requirements.
These solutions include:
- Role Assessments - which can link to an individual’s/business’ assessment, ensuring that they are assigned the correct designation, and which provide a full audit trail of your due diligence to protect your business.
- Dispute management - with the facility to include management for disputed results, allowing you to dispute and evidence the status of your contractor.
- Downloadable reports - with assessments held on the portal, but with the ability for the data to be downloaded at any time.
- Management portal - for easy, anytime management of your assessments, including automated reminders, maintaining your information securely and in one location.
- Tax liability cover - with results backed by a comprehensive tax liability insurance policy.
- Expert support – with expertise and insight from industry experts who have been defending contractors against IR35 for over 20 years.
Few things are as valuable as experience, and with a team that has worked to protect businesses and contractors from unexpected costs, disputing results when an individual is wrongly categorised and met with a significant tax bill, we take great pride in the knowledge we have gained.
This knowledge means that we can protect you, and your business, and guide you through the changes for IR35, ensuring that you maintain efficient and accurate records throughout.
The UK Government have stated that they will be waiving any penalties and fees for those who ‘make honest mistakes’ for the first 12 months, as businesses in both the public and private sector process their IR35 compliance, but these penalties will come into play in 2022 and appear to be uncapped, dependent on the number of inaccuracies. Protecting your business against these potentially huge fees is as simple as making one call to Resourcing People. Let our expertise see you through the process, and trust us to provide accurate, secure assessments for your IR35 categorisations.
Call +44 (0) 118 930 4848 or email email@example.com for more details.