The Easiest Way to protect your incomes
The Solution To Your IR35 ProblemIR35 is shaking up the industry. If you’re reliant on contracts, remaining operational after April is going to be tough. We have the solution.
IR 35
How does IR35 affect your income?
In an effort to re-coup some of the perceived loss of tax income, HMRC have decided that from April 6th, previous legislation that applied only to the public sector will now come into force for private sector contractors.
This IR35 legislation attempts to discourage ‘disguised employees’ – contractors who appear to be doing permanent staff-type roles, but not paying permanent staff taxes.
Assess your position using the CEST tool.
HMRC provides a ‘Check Employment Status for Tax’ tool. The use of the tool is controversial and case law shows court was able to override detrmination in many cases, However, it passing HMRC will stand by the determination.
Status Determination Statement.
Draft amendments to the IR35 legislation introduced within the Finance Bill 2020 inverted the onus of status determination. Now the clients have to provide an IR35 ‘status determination statement’ when assessing the IR35 status of contractors, before a contract begins.
Reasonable Care.
The law prescribes the client should use ‘reasonable care’ while determining the status. Following severe criticism HMRS a draft of the Employment status Manual with the basic principles.
Dispute a determination
As of Aplril 2020, the clients will be involved in the IR35 status determination. Therefore, the service provider will be able to challenge the determination if he disagrees with it.
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People vs. Project Resourcing
The new legislation closes down on Off Payroll workers. Thus, it targets People resourcing. It has a particular impact on all roles that appear to be employees. However, Project resourcing and end to end delivery of 3rd party projects should be safely outside IR35. For project Resourcing it is essential to clearly identify the services to be performed, project deliverables and any milestones. This should include creating a confirmation of arrangements, so the client also understands the true situation.
Additional Benefits
Project resourcing is a shift in paradigm and ensures the contractor has a clear definition of the deliverables. The contractor can carry out the job independently and managing time as preferred. It grants stronger isolation from the clients procedures and handling. The compensation is defined ahead of start for the full unit of deliverable and is based on the agreed statement of work (SoW).
Protection
Our solution
Initial submit
Have a no-obligation discussion with our project design team. We’ll discuss your requirements to understand your needs.
Project proposal
We will help you put together a statement of work and draw up a draft project proposal. Working together with the client, we will refine the details until it matches your needs precisely.
Engagement
When you’re happy with the proposal, statement of work and timescales, we’ll get the contract signed and can start working on your project.
Delivering your project
We’ll have regular check-ins to ensure milestone objectives are being met. If requirements change along the way, we simply adjust the statement of work as needed.
Let’s start, fill out the form
Get out from IR35 right now
Success
IR 35 News
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IR35: the failed revolution of the contractors market
The Government issued the new regulation to revert the onus of status determination under IR35 regulation from contractors to the client. Ideally the legislation should protect the contractors from zero rights employment deemedas self-employment. In practice, all HMRC...
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