25 February 2020
IR35 - what you need to know
Subject to another change in Chancellor, or the current review of the first review by HMRC the changes to IR35 that have impacted the public sector will impact the private sector and personal service companies from April.
What is IR23?
In "plain english" we see two groups impacted:
1. Companies who who are not small , and not part of a small group (Companies Act definitions)
You need to review your engagements with workers via personal service companies - the onus switches to you to correctly classify those workers and if the contracts are within IR35 start processing costs via payroll.
We can help by:
- confirming if you are small
- reviewing contracts and working arrangements
- processing the additional payroll requirement
It is often the case with HMRC that they may have a bedding in period following a change in legislation, but then they will actively pursue non-compliance, and if you have taken expert advice before making decisions this should give some protection from HMRC
2. Small personal service companies
You may now be subject to payroll because you are working for larger organisations who will impose their views on you.
We can help by:
- assisting with challenging the view put forward by the larger companies by reviewing your contracts
- reviewing your personal position and assisting with efficiently winding up your PSC if no longer required or extracting the existing reserves efficiently
As ever if you think you may be affected please get in touch so we can help you through another business challenge!
