In April, HMRC will be introducing heavier penalties to companies that are incorrectly assessing employment status.
Our expert team are on hand to advise your business on any concerns you have about the changing IR35 rules and employment status – complete the form to the right and our experts can reach out to you directly.
IR35 is anti-tax avoidance legislation that aims to collect additional payment from employees “disguised” as contractors for tax avoidance purposes.
Learn more about how the features and functions of the wise system benefit your company.
The off-payroll working rules for public authorities first came into effect in April 2017 and have changed as of the 6th April 2021.
new responsibilities include:
As the client, you will be responsible for determining your contractor’s employment status for tax purposes.
You must determine your contractor’s employment status for tax purposes and provide them with a Status Determination Statement (SDS). You must take reasonable care in reaching your determination, which should be based on the contract and working arrangements.
You can use HMRC’s Check Employment Status for Tax (CEST) tool to help you determine what the contractor’s employment status for tax purposes is.
Where the rules apply, you must provide the contractor with a Status Determination Statement setting out your decision and the reason behind it. You also need to give this to the agency you engage with.
These IR35 rules and accompanying legislation were first brought in way back in the 1980’s, but have only recently started to affect the logistics industry as the rules have evolved in recent years.