Various high profile businesses offer IR35 tax and expenses insurance as a way of offsetting risk against an IR35 claim. Historically the party able to take up the insurance was the contractor who would be liable but since the onset of the public sector rules, the liable party is the fee payer, namely the hirer or agency (if one is involved) that pays the contractor company.
IR35 news dominates the contracting market but at the end of the day the most important thing for a contractor and a hirer is to have the right contract terms in place to protect fees, expectations and the work delivery, writes Adrian Marlowe, MD of the recruitment law specialist Lawspeed.
Following the article posted by People Management on 3rd May “evidence of blanket IR35 assessments ‘deeply concerning’, industry warns” the contracting sector should be alive to the fact that HMRC may be seeking to achieve this outcome, says
If business contacts or friends start to receive emails from you which are obviously spam or phishing, then the chances are that your email has been hacked or that some form of virus or malicious software has found its way onto your computer and account.
As the extension of the IR35 public sector rules slowly unfolds, one option being considered is to switch contractors to engagement through umbrella companies where the new rules will apply.
As with the public authority rules, responsibility for determining the tax status of contractors is to switch from the contractor to the hirer. Tax liability passes to the ‘fee payer’, which, with three exceptions, is the business that contracts with the contractor.
Since the government announced in October 2018 that the IR35 public sector rules would be extended to the private sector, there has been a plethora of publications warning against potential issues.
Whenever engaging an individual it is always important to understand the rules and rights that apply. These are determined by the employment status of the individual, whether an employee, a worker, a contractor, self employed or via a company (e.g. a PSC or umbrella), or some other kind of casual operator.
Lawspeed is delighted to announce the launch of a new accreditation for umbrella companies and other service providers. To be known as SPA (service provider accreditation).
The contractor tax rules known as IR35 are set to change. In simple terms, agencies and hirers that have historically hired contractors without risk of tax liability will, from 5th April 2020, be liable if they get the IR35 rules wrong. It is therefore relevant to understand when the rules apply.
