The IR35 myth-buster: Answering contractors most asked questions
Changes to the off-payroll working rules – otherwise known as IR35 – are fast approaching for the private sector. From April 6th, responsibility for assessing the employment status of a contractor, for tax purposes, passes from the contractor to the end-hirer that engages them. The rule changes are still being met with confusion, however, with […]
News-Avoiding an IR35 Talent Drain
3 in 5 contractors could leave hiring businesses if found to be inside IR35
New research from Brookson Legal warns of a skilled contractor talent drain as 6-month count down to private sector tax reform begins UK businesses are at risk of a significant contractor talent drain if they do not prepare for IR35 tax reform in the private sector, a survey of 500+ contractors by Brookson Legal has […]
CEST vs. Brookson Legal Services IR35 Audit
When the new IR35 Private Sector Legislation is rolled out in April 2020, we know that end hirers will need to demonstrate ‘Reasonable Care’ when determining the status of their off-payroll workers. Despite this ‘reasonable care’ has never been defined and it is questionable if HMRC’s Check Employment Status for Tax (CEST) tool meets the […]
The Cost of Non-Compliance with the Off-Payroll in the Private Sector Rules
The HMRC estimates that only 10% of personal service companies apply the IR35 legislation correctly, causing the Government to have lost out on an estimated £700 million in employment tax payments across 2017/2018. In a bid to cut the cost of such non-compliance the Government is slowly changing the way in which IR35 is policed, […]
Our reactions to Draft Finance Bill Rules for off-payroll working from April 2020
Matt Fryer, Group Compliance Director of Brookson Legal, comments on the government’s draft legislation for the 2019/20 Finance Bill: “This draft legislation confirms that the proposed reform of IR35 is happening in April 2020 and that businesses need to take action now to avoid a significant impact on their business performance and their talent pool. […]
IR35 Considerations for workers in ‘Manager’ Roles
An independent contractor’s employment status is ultimately determined by looking at the degree of control being exerted over the independent contractor, whether there is any mutuality of obligations present, and whether the personal service of a specific individual is required, as well as other contributary factors, such as the level of financial risk the independent […]
UK Businesses in Tax Legislation Limbo
45% of UK businesses yet to take any action on IR35 whilst 21% of firms have taken steps to specifically steal a march on their competitors Nearly half (45%) of UK businesses have yet to make any preparations for IR35 – one of the largest reforms to contractor tax law in history, research by Brookson […]
What does it mean to be outside IR35 for your contractors?
As a business hiring contractors or a recruiter placing them, what does it mean to be outside IR35? What is the potential impact of this on you as the agency or end client? Are there any required actions that you need to take as a result of the contractors you have engaged falling outside IR35. […]
Top 5 things contractors can take away from the IR35 consultation
The recent IR35 consultation issued by HMRC has reaffirmed that the Off-Payroll rules, in force in the Public Sector, will soon be extended to the Private Sector. We have therefore identified some key points that contractors should be aware of: 1) The changes are happening Many contractors expressed concern with the upcoming changes and urged […]