IR35 in Private Sector
Recent changes in the contracting sector will affect our client base and how they can operate under IR35. From April 2020, medium and large companies will be responsible for determining whether the contractors they hire fall within the scope of IR35 legislation and are liable to pay a higher rate of tax. This measure is expected to impact 170,000 individuals who work through their own company, who would be employed if engaged directly.
In a policy paper, the Treasury said the measure was targeted at individuals who are not compliant with the current rules. "For individuals who were previously non-compliant, adhering to the off-payroll working rules could have an impact on the disposable income available to them and their families."
We understand that it is essential for us to be fully compliant with all the latest working regulations and legislations. Due to the introduction of new legislations on IR35 in public and private sector we need to be closer to our supply chain. We have a history of getting the most beneficial package suitable for our clients and our fee structure is flexible according to individual circumstances. From an accountant’s perspective, we hope to work alongside you in whatever way suits you best. We are also happy to refer our clients to your agency and benefit on win-win basis.
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How contractors can prepare for 2020 private sector IR35 reform
Most PSC contractors know by now that from April 6th next year, they will lose the right to set their own IR35 status -- that is unless they work with a ‘small’ company in the private sector.
Despite not having the power to set IR35 status, that’s not to say a contractor cannot influence the outcome of this decision. Focusing on the point, They are preparations, of sorts, you can employ if you’re a limited company fed up with waiting for the other shoe to drop.
What you need to do?
Take the initiative
Communicate with your fellow contractors
Confirm your arrangements
Stay aware of ‘Control’ and ‘MoO’
Seek independent advice
Demonstrate you run a legitimate business
What MSR Will do for you?
We will do an independent advise through our expert team.
From an accountant’s perspective, we hope to work alongside you in whatever way suits you best.