IR35 for Businesses

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Changes are coming to your business in the form of the Off Payroll IR35 Private Sector Reform.

If you engage contractor freelancers, you’ll need to fully understand the proposed rules and what they mean for you. Otherwise, you risk making costly mistakes and losing critical talent come 6th April 2021.

Where before, your contractors had responsibility to consider and determine their IR35 status for tax purposes, it now falls to you (defined as the ‘engager’ under the proposed legislation). You may find certain contractors won’t take too kindly to being found inside IR35, and the associated costs will impact both you and them.

These conversations need to be had now. Overwhelmed? We’ve got your back. Workr Compliance have created a hub to help you get up to speed and prepared for April.

Free PDF Guide

Everything you need to know about IR35

Got contractors on the books and unsure about your new responsibilities? Don’t panic. We’ve created the ultimate guide to IR35 for businesses, where you can find out how to protect your business without sacrificing on the 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 business
  • Insight into what action to take

Download our free guide for businesses

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

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FAQs for Businesses

FAQs for Businesses

What is IR35?

What is IR35?

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

Specifically, businesses that use contractors claiming to be genuinely self-employed that provide services via a ‘One Man Limited Company’ (also known as a ‘Personal Service Company’ (PSC)) when, in reality, they are operating as a disguised employee.

Who is affected?

Who is affected?

Any medium or large business that uses contractor freelancers. Specifically, those that provide services as a One Man Limited Company or PSC despite operating as an employee in everything but name.

Why is the legislation changing?

Why is the legislation changing?

The government believes that a large number of contractor freelancers and the organisations that use them are still exploiting the system by engaging services through limited companies to avoid the correct levels of National Insurance Contributions (NICs) and tax.

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 (you) in the first instance and fee payer (either you or your chosen agency) in the second.

How can I protect my business?

How can I protect my business?

Start by determining whether or not contractors who work for you are inside or outside IR35 legislation. Workr can support you in this determination by conducting IR35 assessments on each of your contracts.

If any of your contractors’ contracts are deemed inside IR35, the Workr Group can advise you on pay options. One of these is a compliant umbrella model that rewards contractors with benefits usually reserved for employees, helping you attract and retain top talent.

Read the Workr blog

Keep up to date with the latest insights

There’s always more you could be doing to protect your business. Our regular content updates will ensure you are fully prepared for 6th April 2021 – and in the best position to grow your business beyond.

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

At Workr, we have a range of services dedicated to protecting the interests of your business. Whether you’re interested in assessing your current roster of contractors or you’d prefer to leave the legwork to our award-winning umbrella company, we’re on-hand to support you.

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

IR35 Assessment