01592 631 644

IR35

Home / IR35

IR35: need to know

what is changing & how can you protect your business?  

IR35 tax legislation has been around since 2000. It’s designed to ensure tax contributions are accurately made by self-employed workers. From 6 April 2021 IR35 ‘off payroll’ rules will apply to medium/large businesses in the private sector; small businesses are exempt.  These rules already apply to the public sector since April 2017.

We want to reassure you that all our processes already comply with HMRC guidelines and are 100% IR35 compliant: 

  • No IR35 risks – all workers paid via our own internal PAYE payroll
  • ISO 9001 accredited – audit ready 24/7 with 100% audits passed
  • REC professionals – as corporate members  of the Recruitment Employment Confederation we stay one step ahead of regulation changes and understand employment law.

What’s Changing?

It is now the clients (not contractor) responsibility to assess the IR35 status (inside or outside IR35) of each assignment, where the services are provided by a contractor working through an intermediary (LTD/umbrella).  Read more about these changes in the HMRC guide.

INSIDE IR35

If the self-employed workers is under supervision, direction and control like an employee, then that assignment is deemed to be ‘inside IR35’ rules and subject to PAYE tax.

OUTSIDE IR35

The worker operates as a genuine business, not under supervision, direction control and therefore is operating outside of the IR35 rule.

WHAT NEXT?

Understand the IR35 rules and speak to a compliant recruitment partner who can help you prepare. In some case LTDs are perfectly legitimate, and in some cases they’re not.

GET IT RIGHT 

Because HMRC will hold the end client liable, we strongly recommend you do some checks on your supply chain to ensure your self-employed agency workers are paying accurate tax. 

DO YOUR CHECKS

  • Are they paying workers compliantly – risk free?
  • Are contractual agreements fit for the future?
  • Up to speed with HMRC ‘off-payroll’ working rules?
  • Up to date on immigration & employment laws?
  • Aware of what you need to do to prepare for IR35 to ensure your business is protected?

"

“Blueprint are 100% IR35 compliant
We stay ahead of change and prepare well in advance.
This enables us to support clients & contractors through complex changes like IR35, and ensures all our processes & contracts always comply with HMRC guidelines.“


Mark Imrie

Accounts & Payroll Manager, Blueprint Recruitment