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Taxation Efficient and reliable tax advise.
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As tax advisers, our objective is to work closely with you to ensure you pay the minimum tax required by law. Contact Us Arrange a meeting so we can discover your needs. Your professional and personal goals are central to our consulting services; we take the time to get to know you better so we can offer the best advice.
The current hot topic Working off-payroll From 6 Aprila change to the off-payroll IR35 rules is expected.
Draft legislation has already been published and further HMRC guidance is expected. The new rules will affect you if you work via your own personal service company PSCand off-payroll workers should be aware that their clients are likely to investigate the profile of the contractor workforce more closely than before, as part of a review of compliance, strategy and spend.
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An intermediary can be an individual, a partnership, an unincorporated association or a company. Contracts caught by the rules The change could impact you if you supply personal services to large and medium organisations in the private and voluntary sector.
Under the new rules, responsibility for making the decision as to whether IR35 rules apply passes to the business you contract for.
The key question is whether, if your services were provided directly to that business, you would then be regarded as an employee. You may be used to this if you undertake contracts in the public sector, where similar provisions already exist.
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If you disagree, you can challenge the status determination with the business, and it should respond within 45 days, either withdrawing or upholding the decision, again supplying reasons. Implications Significant tax implications arise.
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The potential tax advantages of working under such a contract, especially for PSCs, are much reduced. Review your position This is a good time to take stock of your options. Are clients likely to query your employment status?
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Should you consider restructured work arrangements, or renegotiating fees? If working via a PSC, is it still the best business model? With clients checking that contracts comply with the new rules, employment status for contractors is likely to come under increasing scrutiny.
Please contact us for specific advice on your options and the tax consequences. Recent news and topics.
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