IR35 - What is changing, and how can we help?
In April updated regulation will come into effect impacting the engagement of contractors via Limited Companies or Personal Service Companies (PSCs). Much has been written and speculated about the implications of these changes, and the finer detail is yet to be confirmed, but this summary provides an overview, and information about how Freshminds will continue to support your project requirements.
Historically, responsibility for determining the employment status of an engagement fell to the individual contractor, together with liability for correct payment of associated PAYE taxes. Going forward, responsibility for determining the employment status of engagement will rest with the hiring company, and liability for the appropriate deduction of PAYE taxes will rest with the entity paying the contractor.
These changes will come into effect on April 6th, and apply to any work undertaken after that date, or any payments made after that date for work undertaken before.
What this means for your Freshminds projects
The vast majority of Freshminds projects won’t be affected by the changes. At the junior end of our service offering, all contractors are already engaged on a PAYE basis, and this will continue unchanged.
At the senior and specialist end, the majority of our clients engage us on a consultancy agreement – under which we deliver outcomes against an agreed statement of work. Any subsequent employment status determination and PAYE tax liability relating to individuals engaged on that project rests with Freshminds. Again, this will remain unchanged.
Where a client wishes to engage a contractor directly, and determines this engagement to sit inside IR35, we will process all payments through our PAYE payroll. This may have an impact on your project cost, as additional employment costs may apply, and some contactors may adjust the rates at which they are prepared to work.
With an unrivalled global consulting network we are confident of consistently and compliantly delivering excellence on demand, supporting our client’s deliver critical strategic and commercial projects.
Seminar Session Details
We will be hosting a seminar session at which expert employment and tax advisors will give greater detail and respond to specific questions. We will also reiterate the support that we can provide to ensure that any changes do not disrupt your ability to access excellence on demand through the Freshminds network.
Robert Woodward - Employment Tax Director at BDO
Oliver Weiss - Partner at Blake Morgan
Catherine Hearn – Director of
Resourcing & Talent – BBC
Adam Clements - MD at Freshminds
Date - 12th Feb 2020
Time - 17:00 PM onwards
Please get in touch with Steph at firstname.lastname@example.org to find out more and register for the event.