From the 6th April 2020 the new IR35 Legalisation will be in place.
If you are a contractor working via your own Ltd company you might be restricted to number of clients that you would normally work with on a regular basis.
The fee payer will now become responsible for accounting and paying the related tax and NIC, including the additional cost of the employer’s NIC to HMRC.
The new Off Payroll Working Rules will only affect medium and large private sector organisations, excluding those with fewer than 50 employees or less than £10.2m annual turnover
It will then be their responsibility to determine whether Limited Company Contractors’ role is inside or outside the IR35 Legislation, and whether the rules apply: making the status determination – inside or outside IR35
It has been introduced by the government to ensure that contractors pay the same Tax and National Insurance contributors as an equivalent employee.
You will be affected if you are:
1. A worker who provides their services through their intermediary
2. A client who receives services from a worker through their intermediary
3. An agency providing workers’ services through their intermediary
Recruitment agencies can offer a number of solutions. Our trades recruiter Mike has previously worked within the construction industry for up to 9 years as electrician on a self-employed basis. Since moving into the recruitment industry, he has had 3 years’ experience of working with tradesmen across the UK.
His advice would be: “Rather than turning down potential attractive projects with clients that fall inside IR35. You could instead turn to an accredited umbrella company and get paid as a registered CIS contractor, there’s one we’ve worked with and trust for the last 10 years.
You will still get all the benefits of being a self-employed tradesman. You will also be given the reassurance that all your payments will be done by a vetted company providing you with regular pay slips proving that all tax is being paid.”
1. Talk to your account to see what they recommend is best for you
2. Check out this Gov link, here you can do your own anonymous assessment
3. Find our more about working as a CIS contractor
4. Get in contact with us here at Niyaa People and we can support you in finding a permanent role
If you have any questions regarding IR35 or trades & labour, don’t hesitate to get in touch with our specialist Mike!