Starting the New Year straight into another National Lockdown the last thing on anyone’s mind right now is IR35 and the legislation changes from April 2021.However, the changes are still going ahead despite the impact to business and their workforce caused by the coronavirus pandemic.Here at ePayMe we have been working closely with clients and contractors to ensure the transition from April is as streamlined as possible to prevent minimum disruption to agencies, clients and … [Read more...]
Medical Workers – Ltd to Umbrella pre IR35
The medical industry is one that will undoubtedly be affected by the changes IR35 will bring, yes, it is finally coming around again. Although there have been hopes that it will be delayed further, end clients are being told to prepare. HMRC have also stated that PSC’s won’t be subject to IR35 compliance checks, putting further emphasis on the hirer to determine status and possibly be the ones penalised if they get it wrong.With many workers and Locums trading as Ltd companies still within … [Read more...]
Off- Payroll Reforms 2020
Major reforms to off-payroll (IR35) rules within the Private Sector are scheduled to take effect from April 2020.This will mean that the responsibility will be switched from many contractors to the end client. Their IR35 status of being inside or outside will have significant affects.The rules are not exactly straight forward but it is important to understand what they will mean to your agency as well as your end clients and contractors, so that you can make an informed decision about … [Read more...]
IR35 Guidance – April 2020 changes to off-payroll working for clients
Overview Off-payroll working rules change on 6 April 2020 and are applied differently. From this date, all public authorities and medium and large sized clients will be responsible for deciding the employment status of workers. Who the rules apply to Some rules already apply to all public sector clients, but from 6 April 2020 medium and large-sized private sector clients also need to apply them. The private sector includes third sector organisations, such as some charities.The rules apply … [Read more...]
IR35 and the Private Sector changes April 2020
This has and will be a very hot topic over the coming months with the April deadline fast approaching. The new “off-payroll” tax rules are coming in to effect across the private sector as of 6th April 2020. The revamp of the existing IR35 laws, which were introduced in 2000, ensuring that contractors not meeting HMRC’s definition of Self-Employed are not benefiting from tax breaks that are associated with contracting.Since the Public Sector changes back in 2017, the rules require companies … [Read more...]
Just when I thought I was OUT, they pull me back in
With ongoing research by many commentators showing that contractor’s confidence in HMRC’s IR35 CEST (Check Employment Status Test) tool is low, questions are now turning to whether the tool is now even fit for purpose. This is especially prevalent with the governments supposed determination to implement these changes to the private sector.The CEST tool is used by contractors’ and Public Sector Authorities to accurately assess and determine an engagement’s IR35 status. Provided the … [Read more...]
To Prefer or not To Prefer…. That is the question
Whilst many Recruitment Agencies utilise a Preferred Supplier List (PSL) of umbrella companies and contractor accountants, how sure can stakeholders of an agency be that this is being enforced by their workforce?Unfortunately, not everyone plays fair and with the introduction of various pieces of legislation in the past few years, the need for an agency and its directors to protect itself has never been greater. The new Criminal Finance Act especially includes the corporate offence which … [Read more...]
‘Brave’ contractor MDCM Ltd wins IR35 appeal
A brave limited company contractor has won his IR35 appeal, overcoming three status factors that went against him and giving HMRC a red-face in the process.Mark Daniels, who fought HMRC alone in an era of it using barristers, even got helped to his win by HMRC, despite Financial Risk, Substitution and MOO going in its favour.But on Control, HMRC was forced to withdraw its submission against Daniels, director of MDCM Ltd, during the hearing and once tax officials had heard oral evidence … [Read more...]
PSCs, are you ready for £3,000 less in dividend allowance?
It might date back to an announcement almost three years ago, but a change to dividend taxation will hit PSC contractors – in earnest – from next month, writes James Trowell, head of tax at Dolan Accountancy. In fact, from 6th April 2018, there are significant changes to the tax-free dividends allowance. These changes will reduce the 2017/18 tax-free rate from £5,000 to £2,000 -- per tax year, in 2018/19.The ChangesTax Free Dividends Allowance - £2,000 Personal Allowance - £11,850 (up … [Read more...]
IR35 Forum suggests it’s time to prepare for private sector reform
Signs still point towards an announcement in this year's Autumn Budget, with the new rules perhaps coming into force in April 2019The much-debated future of IR35 in the private sector reached new levels of uncertainty recently, with the minutes from the government's IR35 Forum yet again hinting that reform is on the cards.The IR35 Forum is a group of external stakeholders, including taxpayer representatives and professional advisers, who meet quarterly with HMRC. It was established … [Read more...]