The Government and HMRC are currently considering changing the intermediaries’ legislation (IR35) for private sector engagements and Core are aware that there is a strong likelihood these changes will be implemented as early as April 2019. The ‘off-payroll working’ legislation will ensure that contractors working through their own Personal Service Company (PSC) can only take dividends if they are legitimate self-employed contractors.
The proposed changes will have the following implications:
– The PSC will no longer decide on IR35 – the responsibility will shift to the end hirer who must take reasonable care
– The Agency will be need to assess if reasonable care has been taken and if inside IR35, they are responsible for PAYE calculations and payment to HMRC.
Core Finance Management are fully up to speed on all the IR35 legislation and implications, please arrange a meeting with our in house expert Lauren Baker where she will share her observations on the following areas:
– The impact of the changes for agencies and areas of risk
– How to educate end clients and your staff
– Operational considerations including project based approaches
– Contractor behaviours, many will expect to be offered payroll options rather than umbrella only
– The solutions available