IR35 for Agencies

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Off Payroll IR35 Private Sector Reform changes are set to leave you holding the bag in the event of tax avoidance.

From 6th April 2021, it falls to you not only to communicate to contractors what their clients are classifying them as, but also to pay any related tax, including penalties should they be misclassified.

As such, it’s never been more important to understand the ins and outs of IR35. In the run-up to April you’ll need to prevent clients from stalling by helping them navigate the changes, and in turn put your agency at the heart of the client-contractor relationship.

Not ready? Workr Compliance is here to get you up to speed. We’ll help you understand what the proposed changes mean for you, as well as how to navigate the risks and seize the long-term opportunity IR35 presents for your agency.

Free PDF Guide

Want to educate clients and protect your contract business?

If you’re yet to review the contracts on your books, you’ve come to the right place. Our team have provided a concise overview of the proposed changes and the steps you can take to protect – and even grow – your bottom line.

You’ll be able to deduct expenses from your work income to get the best tax relief and to get your take-home pay via salaries and dividends. We handle all of that for you.

Download our free guide for:

  • A summary of the current IR35 legislation (Intermediaries Legislation 2000)
  • A jargon-free overview of the proposed reforms
  • Clarity on how it affects your agency
  • Insight into what you can do to prepare

Download our free guide for agencies

Download our PDF guide – Making sense of the new IR35 rules as agency

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FAQs for Agencies

FAQs for Agencies

What is IR35?

What is IR35?

IR35, also known as the Intermediaries Legislation 2000, is tax law designed to prevent contractors from misrepresenting their employment status for tax purposes.

Specifically, contractors claiming to be genuinely self-employed and providing services via a ‘One Man Limited Company’ (also known as a ‘Personal Service Company’ (PSC)) . Yet, in reality they are functioning as a disguised employee.

Who is affected?

Who is affected?

Any agency supplying contractors to medium or large businesses. Namely, contractors who operating under a One Man Limited Company or PSC.

Why is the legislation changing?

Why is the legislation changing?

The government believes that a large number of contractor freelancers are still exploiting the system by avoiding the correct levels of National Insurance Contributions (NICs) and other tax laws favourable to businesses, due to their employment status.

What is the change?

What is the change?

Currently, it’s the responsibility of the contractor to determine whether they are inside or outside IR35. However, from 6th April 2020, this responsibility lies with the engager (end client) in the first instance and the fee payer (you, the agency) in the second.

How can I protect my business?

How can I protect my business?

Before 6th April 2020, you’ll need to understand exactly how clients and contractors plan to approach the new rules. Clients will need to decide whether they assess each contract on a case by case basis or classify everyone as inside IR35 – impacting their bottom line and yours.

Should they choose the former, you need to ascertain how clients are classifying contractors. These conversations can be tricky, which is why we’re more than happy to conduct these alongside you and ensure everyone’s on the same page.

If any of your contracts are deemed inside IR35, the Workr Group will advise you on pay options, such as bringing them under a compliant umbrella model, which also provides access to benefits usually reserved for employees.

Read the Workr blog

Keep up to date with the latest insights

If you want to protect and sustain your contractor income you’ll need to immerse yourself in IR35. It isn’t enough to understand the changes. From here on out you need to be ahead of the curve when it comes to IR35 legislation.

Want to stay in the loop? Read more of our staff’s thoughts and opinions and updates from Workr Group on our blog pages:

Contact us

Contact Workr Compliance

Worker Group offer a range of services designed to help agencies stay compliant and profitable in the face of changing legislation. Whether you’re interested in how we can support you and your clients in determining a contractor’s status, or you want to explore working with an umbrella company, we’re here to guide you.

To request more information from a member of our team, please get in touch via the form below.

IR35 Assessment