Commonly referred to as IR35, new ‘Off-payroll in the Private Sector...' legislation is due to be introduced in April 2021, which will have a significant bearing on the earnings potential of many contractors. Previously, contractors could decide the precise nature of their own working arrangements and get paid into their own limited company, but this will no longer be the case from the start of the next financial year.
The employment status of all assignments will have to be accessed by any entity within the supply chain (excluding the contractor) to ensure all contract arrangements comply with the new regulations. Acts of non-compliance will run the risk of extensive penalties and hefty fines, plus an immediate demand for any unpaid taxes 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 with the outset. Administered by the industry recognised IR35 Shield software, contractors completing the test will be able to work safely in the knowledge that they are undertaking all new assignments in a compliant manner.