IR35 Soft Landing Ending – Industry Trends: Part 2
As mentioned in our previous email, CEST leaves 21% of assessments undetermined. This is a similar theme that we have witnessed from all variations of online, automated assessments and unfortunately, it isn’t the only issue! The main issues behind automated online tools: Online tools used for IR35 assessments are unable to provide advice and guidance, […]
IR35 Soft Landing Ending – Industry Trends: Part 1
HMRC introduced the CEST (Check Employment Status for Tax) tool in March 2017 and it has been much maligned ever since. Even with the occasional update, CEST still doesn’t follow case law or precedent that has been set since IR35 came into force in 2000. Some of the main issues with businesses using CEST: CEST […]
IR35 Soft Landing Ending – Industry Trends
The IR35 rules changed in the Private Sector as of April 2021 – Making it the client’s responsibility to determine the employment status of their contractors, produce an SDS (Status Determination Statement), whilst ensuring they take ‘Reasonable Care’ in their decision and on an ongoing basis. What this means for hirers: The HMRC ‘soft landing’ […]
Nearly 90% of businesses forced to increase contractor rates since April 2021
NEARLY 90% OF BUSINESSES FORCED TO INCREASE CONTRACTOR RATES SINCE APRIL 2021 Increase comes amidst plans to grow use of contractors over next 18 months 75% have been forced to raise contractor rates by more than 10% 77% are now finding hiring flexible workers to be challenging or very challenging 90% of these companies plan […]
Do private sector businesses understand IR35?
With IR35 now well over 6 months old, you would assume that businesses have implemented the correct processes and procedures, allowing them to remain compliant in the eyes of HMRC. With the IR35 ‘soft launch’ coming to an end in April 2022 and HMRC preparing to enforce these changes, we wanted to learn how clued-up […]
Three reasons why an automated tool doesn’t guarantee IR35 compliance
Nearly six months on from the introduction of IR35 into the private sector, many businesses are still early in their IR35 journey and yet to embed their practices and processes into business as usual. But with many high-profile government bodies hit with IR35 tax bills this year, now is the time to question if your […]
HMRC Commence IR35 Private Sector Checks
Reports have recently emerged stating that just over 5 months into the roll out of IR35 changes in the Private Sector HMRC has already commenced its compliance activity. The ICAEW is reporting that HMRC have issued letters to oil and gas, finance and banking organisations seeking to obtain information on their processes for hiring and […]
How much attention have you been paying to the IR35 private sector changes?
With the private sector legislation now in effect we have seen a lot of changes this year, how aware of the changes are you? Complete our quiz to see how much you know! Complete the quiz by 12th November 2021 and be entered into a prize draw to win a £200 Voucher.
Why re-reviews are needed to maintain your reasonable care obligation
Whilst many organisations are just coming to terms with the impact of IR35 in the Private Sector, following the delayed implementation date of 6th April 2021, it should be recognised that the IR35 obligations haven’t ended and all public sector authorities and medium to large private sector organisations have an ongoing obligation to demonstrate reasonable […]
Northern Light Solutions Limited v HMRC (2021)
The Northern Light case – confined to history, despite being reported in June 2021! The recent IR35 appeal case of Northern Light Solutions Limited v HMRC (2021), heard in the Upper Tax Tribunal, once again highlights the difficulties with understanding and applying these tax rules effectively. Employment tax status is a complex area, based on […]