Don't Get Caught by IR35

Commonly referred to as IR35, new ‘Off-payroll in the Private Sector...' legislation introduced in April 2021, has had a significant bearing on the earnings potential of many contractors. Previously, contractors could decide the precise nature of their own working arrangements and invoice for work via their own limited company, but this is no longer the case.

Accessing the employment status of temporary contracts is now the responsibility of the hirer (or any other entity within the supply chain excluding the contractor) who must communicate the precise nature of any given assignment prior to appointing a contractor. Any acts of non-compliance will be subject to extensive penalties and hefty fines, plus an immediate demand for outstanding tax liabilities deemed to have been unpaid by the contractor.

Thankfully, Edward Thomas provides contractors with a free employment status test for all assignments to ensure that they fully comply from the outset. Administered by the HMRC-recognised IR35 Shield software, contractors completing the test will be able to undertake assignments safe in the knowledge that they are working in a compliant manner and in full accord with IR35 legislation.