IR35 – A FIRM GRIP THAT WON’T LET GO! / MORE CHANGES, MORE ADMIN, MORE RED TAPE!
It sometimes feels that someone somewhere is trying to kill the entrepreneurial spirit of the Recruitment industry, but this is nothing new – bring it on I say!
Whilst the red tape and legislative changes are nothing new to the Recruitment industry, people do need to listen up and adhere to its implications – they’re far reaching. So far reaching in fact that recently Transport for London (TFL) has recently banned all Public Sector Contracts ahead of the IR35 changes – this is pretty big Read more.
20 years ago I remember thinking that ‘IR35’ would come and go, its still there, and now its got a bear grip on the sector. Below we’ve pulled together some of the better sources of information to help you understand how the IR35 Intermediaries legislation will apply to you and your operation.
How will contractors be affected by IR35?All public sector contractors who do not meet HMRC’s definition of ‘self-employment’ will be affected. The result will be an increase in their tax and National Insurance liability. Essentially, contractors will be taxed as if they were employees. The very real risk is that contractors who fall inside IR35 will be deterred from working in the public sector, which will ultimately affect public sector organisations’ ability to deliver their projects.
- HMRC hopes the changes will raise £400m by targeting 20,000 public sector contractors alone – Read more.
- IFS report says self-employed 'have unfair tax advantage' – Read more.
- From April 2017, the responsibility to ensure you are paying the correct employment taxes switches from the contractor, to the public sector body or agency – Read more.
- As those at the top - IR35 Working through an intermediary GOV.UK
If you're a Recruitment Agency that needs to streamline the back office check out - Voyager Mid-Office - the pay and bill solution!