The HMRC in a briefing issued last month announced how it will support IR35 affected organisations and intervene if ‘deliberate defaulters’ don’t comply.
With the deadline April, 6th 2021 fast approaching the HMRC have issued a briefing, available on GOV.UK on how it will support affected organisations with IR35 reform changes. The HMRC also stated how they will intervene if IR35 non-compliers deliberately do not adhere to changes. Are you prepared?
IR35 changes apply to
- medium or large sized non-public sector businesses which employs contractors who work through their own limited company or other intermediary
- an employment agency which supplies such contractors.
- an annual turnover of more than £10.2 million
- a balance sheet total of more than £5.4 million
- more than 50 employees
If you are still unsure you can take the HMRC CEST (Complete Employment Status for Tax) assessment.
IR35 support for businesses
The HMRC offers:
- live webinars that give you the opportunity to ask questions and receive replies in real time
- a range of additional guidance and support material
- online digital tools – all of which can be found on HMRC’s help and support page.
Help support your workers
You can also help your contractors, self-employed workers and consultants to understand the rules, and how it might affect them:
- share your processes and changes to operations
- offer HMRC’s resources to help them to understand the changes
- make them aware of HMRC’s guidance and support to help make sure they’re not caught out by tax avoidance schemes.
Consequences for IR35 ‘deliberate defaulters’
The HMRC will challenge any signs of deliberate behaviour or clients who deliberately get their tax affairs wrong. In certain circumstances, and when right to do so, the HMRC warns that they will publish defaulters details. Furthermore, any deliberate non-compliance involving criminal activity can lead to prosecution.
The HMRC also urges businesses to be weary of tax avoidance schemes that claim to avoid the off-payroll working rules. An example of this, umbrella companies that offer unrealistic ‘too good to be true’ take home rates through artificial schemes. If you are unsure about being involved in one, resources are available to assist you how to spot the signs of tax avoidance schemes.
Need assistance or a shoulder to cry on?
If you have any questions or concerns about your IR35 status and need assistance, please do connect with us at ePayMe on 01252 863700 or email info@epayme.co.uk.
ePayMe are one of the UK’s leading providers of compliant payroll and accountancy services to contractors, temporary agencies and small businesses. Our bespoke systems utilise the latest software and link directly to HM Revenue & Customs using RTI (Real Time Information) system, ensuring that pay calculations are always based on the correct tax code.