IR35

are you prepared?

What is IR35?

“IR35” is the name commonly used to refer to a piece of tax legislation which came into force in July 2000 (public
sector). This legislation is aimed at identifying “disguised employees” working through PSCs (or partnerships).
A new IR35 legislation will come into effect on 6th April 2021 for the private sector. The new legislation will mean
that the responsibility for determining a contractor’s IR35 status and paying the correct tax will be passed to the
client rather than the contractor.
 

Will IR35 apply to your company?

The new rules will apply to companies that are not classified as “Small Businesses” by the Companies Act 2006.
You will be classified as a “Small Business” if two or more of the below apply to your company –

Case-By-Case Assessments

Fair and compliant IR35 assessments reviewed by experienced consultants

Management Portal

Easily manage your assessments, ensuring obligations under the rules are fulfilled

Tax liability Cover

Results are backed by a comprehensive tax liability insurance policy (optional)

SDS - Status determination statement

If IR35 does apply to your company. You will need to make an SDS for each of your contracting roles. Here are some things to consider when making your SDS.
HMRC have created an online tool for testing IR35 status: Check Employment Status for Tax (CEST). It is an
optional service consisting of multiple choice questions. Despite HMRC’s encouragement to use the service,
the tool remains insufficient for assessing status; tribunal judges have highly criticised the use of a tick-box
exercise to determine status. Our Status Review system provides a robust assessment process ensuring a fair
and compliant approach to the off-payroll rules.
IR35 table

Need IR35 support?

No stress

Save time

No cost!

We can supply you with a unique online tool to provide a service called “Status Review” which is free to use for
all our clients.
We manage the whole process; from Status review to pay rolling your contractors!

Have you got a contractor role that you need help with? Get in touch with the team today