This document provides an overview of IR35 legislation in the UK, which determines the tax status of contractors working through limited companies. It explains what IR35 aims to achieve, how employment status is assessed, and some best practices for contractors to avoid falling within IR35 such as having fixed-term contracts for specific projects and taking steps to demonstrate independence from clients. The document also provides answers to some common IR35 questions.
The changing face of contracting: IR35 in the private sectorMorgan McKinley
Will introducing IR35 to the private sector change contracting as we know it? This presentation explores the perceptions of active contractors who work in the UK.
Off Payroll Working In Private Sector | Makesworth Accountants in HarrowMakesworth Accountants
New tax rules for individuals working via their own companies for medium or large business. From 6 April 2020, new tax rules are proposed for individuals who provide their personal services via an ‘intermediary’ to medium or large business. An intermediary may be another individual, a partnership, an unincorporated association or a company. The most common structure is a worker providing their services via their own company (PSC) which is the term used in this letter to summarise the rules which will apply to all intermediaries. Similar rules were introduced in 2017 for public sector organisations receiving services from PSCs. The 2020 rules will use the 2017 rules as a starting point which means, in practical terms, that the principles have already been decided but some aspects of the detailed operation of the rules will be decided in a consultation process. Draft legislation has been published which will, subject to consultation, be included in the next Finance Bill.
Thought leadership interactive PDF for Croner Solutions that captures the thoughts of experts on key developments in HR, employment and health & safety. It looked look back on past and also future trends to deliver valuable insight.
time
we provide our clents the legal help to get their companies registered,make legal documents,filing tax returns,copyright,patent and trademark ina very simpliefied manner and let u save your time and efforts with a professionally equipped team of lawyers,chartered accountants and company secretaries. we ensure to be your legal hand over your visionary worldl
startup registration,legal documentation,copyright,trademark and patent Anjali Jain
we provide our clents the legal help to get their companies registered,make legal documents,filing tax returns,copyright,patent and trademark ina very simpliefied manner and let u save your time and efforts with a professionally equipped team of lawyers,chartered accountants and company secretaries. we ensure to be your legal hand over your visionary world
The IR35, the HMRC's name for off-payroll working and subsequent taxation, had signicant changes due to come into force in April 2020. However, with the Coronavirus pandemic occurring, they chose to delay it until April 2021. If you're a
contractor, it's important that you're fully aware of what IR35 changes mean for you.
HR Managers Guide to Proper Worker ClassificationSage HRMS
The document provides guidance to HR managers on properly classifying workers as employees or independent contractors. It discusses the importance of proper classification and potential penalties for misclassification. The IRS examines behavioral control, financial control and the type of relationship to determine a worker's status. The summary advises routinely reviewing classifications and maintaining documentation to support decisions. Potential future legislation aims to further reduce misclassification issues.
The changing face of contracting: IR35 in the private sectorMorgan McKinley
Will introducing IR35 to the private sector change contracting as we know it? This presentation explores the perceptions of active contractors who work in the UK.
Off Payroll Working In Private Sector | Makesworth Accountants in HarrowMakesworth Accountants
New tax rules for individuals working via their own companies for medium or large business. From 6 April 2020, new tax rules are proposed for individuals who provide their personal services via an ‘intermediary’ to medium or large business. An intermediary may be another individual, a partnership, an unincorporated association or a company. The most common structure is a worker providing their services via their own company (PSC) which is the term used in this letter to summarise the rules which will apply to all intermediaries. Similar rules were introduced in 2017 for public sector organisations receiving services from PSCs. The 2020 rules will use the 2017 rules as a starting point which means, in practical terms, that the principles have already been decided but some aspects of the detailed operation of the rules will be decided in a consultation process. Draft legislation has been published which will, subject to consultation, be included in the next Finance Bill.
Thought leadership interactive PDF for Croner Solutions that captures the thoughts of experts on key developments in HR, employment and health & safety. It looked look back on past and also future trends to deliver valuable insight.
time
we provide our clents the legal help to get their companies registered,make legal documents,filing tax returns,copyright,patent and trademark ina very simpliefied manner and let u save your time and efforts with a professionally equipped team of lawyers,chartered accountants and company secretaries. we ensure to be your legal hand over your visionary worldl
startup registration,legal documentation,copyright,trademark and patent Anjali Jain
we provide our clents the legal help to get their companies registered,make legal documents,filing tax returns,copyright,patent and trademark ina very simpliefied manner and let u save your time and efforts with a professionally equipped team of lawyers,chartered accountants and company secretaries. we ensure to be your legal hand over your visionary world
The IR35, the HMRC's name for off-payroll working and subsequent taxation, had signicant changes due to come into force in April 2020. However, with the Coronavirus pandemic occurring, they chose to delay it until April 2021. If you're a
contractor, it's important that you're fully aware of what IR35 changes mean for you.
HR Managers Guide to Proper Worker ClassificationSage HRMS
The document provides guidance to HR managers on properly classifying workers as employees or independent contractors. It discusses the importance of proper classification and potential penalties for misclassification. The IRS examines behavioral control, financial control and the type of relationship to determine a worker's status. The summary advises routinely reviewing classifications and maintaining documentation to support decisions. Potential future legislation aims to further reduce misclassification issues.
This document discusses new certification requirements for overhead rates that will impact engineering and design firms working with the federal government. It notes that firms must now annually certify their overhead cost submissions and proposals to ensure compliance with federal regulations. Non-compliance could result in suspension, debarment, or prosecution. It provides examples of indirect costs that could be deemed unallowable if improperly charged to overhead and advises firms to implement policies to protect themselves, including educating staff on contracting rules and separating unallowable cost accounts.
Commercial insurance risk and liability review, February 2016Browne Jacobson LLP
Our annual review provides a comprehensive review of some of the most important judgments and legal developments during 2015 and our analysis of some of the changes on the horizon for 2016 and beyond. We have covered a lot of ground this year so I hope you will be able to find a number of updates that are relevant and useful to you.
If you would like to know more about any of the topics, please feel free to contact any of the authors of the articles.
https://www.brownejacobson.com/insurance/training-and-resources/legal-updates/2016/01/commercial-insurance-risk-and-liability-review-2015-2016
How to stay 100% compliant when hiring and paying your global workforceNick Ganzha
Hiring globally distributed teams of IT developers? Want to know how to onboard and pay foreign employees abroad while staying 100% compliant in numerous countries?
It's especially crucial for UK employers to know in light of the new IR35 law.
For more information check out our presentation.
This document provides an overview of essential labour legislation in India. It discusses the historical context and principles behind labour laws, including protection, social justice, regulation, and welfare. The document then classifies different types of labour legislation and provides examples. It also discusses key concepts like principal employers, contractors, and contract labour. The document outlines regulations around registration, licensing, and responsibilities. It discusses protective labour laws and managing industrial relations. Overall, the document provides a comprehensive introduction to India's essential labour laws and regulations.
THE AMENDMENTS TO THE BBBEE ACT 53 OF 2003 AND THE CODES OF GOOD PRACTICE ISS...Werksmans Attorneys
The document summarizes key amendments to the Broad-Based Black Economic Empowerment Act of 2003 and the Codes of Good Practice in South Africa. It discusses:
1) Establishment of a BBBEE Commission to oversee compliance, investigate complaints and fronting practices, and maintain a register of large BBBEE transactions.
2) Definitions added for terms like "knowingly" and expansive definition of "fronting practice".
3) Introduction of criminal offenses for misrepresentation of BBBEE status or fronting, carrying fines and imprisonment.
4) Increased reporting obligations on government entities to consider BBBEE in procurement and develop partnership criteria.
The document outlines the legislative framework and contents of the Revised Codes of Good Practice on Broad-Based Black Economic Empowerment in South Africa. Some key points:
- The Revised Codes were issued by the Minister of Trade and Industry under the Broad-Based Black Economic Empowerment Act of 2003.
- They provide details on the legislative process, definitions, effective date, and transitional provisions between the old and new codes.
- Changes include new thresholds for EMEs, QSEs, and generic entities. Empowering supplier status is now required for procurement points.
- Sector codes will remain in effect until aligned, and many statements from the old codes were not repe
BHW Solicitors Summer Employment Law NewsletterBHWSolicitors
The document is a newsletter from BHW Employment Law summarizing recent changes to UK employment law. Some key changes discussed include:
1) Introduction of fees for employment tribunal claims, with Type A claims costing £160 issue fee and £230 hearing fee, and Type B claims such as unfair dismissal costing £250 issue fee and £950 hearing fee.
2) "Protected conversations" can now be used when terminating employment to avoid legal proceedings, though employers must be careful not to engage in "improper behavior" which could allow employees to submit settlement offers as evidence.
3) A new "employee shareholder" employment status will exchange certain rights like unfair dismissal for company shares worth over £2000
This document provides an overview of contribution requirements for limited liability partnerships (LLPs) under Indian law. It notes that contribution is not required to form an LLP but must be specified in the LLP agreement. Contribution can be in tangible or intangible forms and intangible contributions must be valued by an accountant. The ownership and profit/loss sharing ratios of partners may be different than their contribution amounts. The document also addresses increasing, decreasing, and returning contributions as well as tax treatment of interest paid on contributions.
The document discusses the key differences between a partnership firm and a Limited Liability Partnership (LLP) under Indian law. It notes that an LLP provides benefits of limited liability for partners along with flexibility of a partnership in terms of governance structure. However, concerns are raised about the government potentially subjecting LLPs engaged in large businesses to taxes like dividend distribution tax in the future. The document also examines whether chartered accountants are allowed to form LLPs or convert existing partnerships to LLPs under relevant regulations.
The document summarizes key information for motor vehicle dealers regarding franchise agreements and the current legislative landscape in Australia. It notes that while there is no ideal franchise agreement, recent and proposed changes to laws such as the Franchising Code of Conduct may help improve protections for dealers. It outlines challenges facing the Australian automotive industry and reviews existing legal protections for franchise agreements from unfair contract terms and unjust conduct. The presentation provides an overview of relevant laws and regulations regarding franchise agreements in Australia.
Getting The Deal Through: Financial Services Litigation 2018Matheson Law Firm
This document provides an overview of financial services litigation in Ireland. It discusses the most common causes of action brought against banks and financial institutions, which typically relate to the misselling of financial products and mismanagement of investment funds. It also examines the types of non-contractual duties that have been recognized in misselling claims, such as advisory duties. The document outlines Ireland's statutory liability regime for untrue statements in prospectuses. It notes that Irish courts have generally not recognized an implied duty of good faith in contracts, though certain relationships may imply such duties. Fiduciary duties are more likely to be found in advisory relationships. The document also discusses the treatment of standard form agreements, the ability of financial institutions to limit liability,
Working Through a Limited Company BrochureWendy Church
This document provides information for professionals setting up their own limited company to work as independent contractors or consultants. It discusses why working through a limited company is required, how to set up the company, initial tasks like opening a bank account and registering for taxes, determining an appropriate daily rate, and other regulations and compliance considerations like insurance and record keeping. The specialist accountancy firm Competex offers services to help with all aspects of setting up and running a personal service limited company for independent professionals.
This document summarizes the evolution of Black Economic Empowerment (B-BBEE) in South Africa from its inception in 2003 to amendments made in 2013 and 2015. It outlines the objectives of B-BBEE, major amendments made to the B-BBEE Act in 2013 related to oversight and criminal offenses, and implications of the amended Act for procurement policies, reporting requirements, and penalties. It also describes the classification of entities, scoring methodology, compliance levels, and amendments made to elements like ownership, enterprise development, and the introduction of the "empowering supplier" concept in the 2015 amendments.
The document discusses statutory compliance and why it is important for organizations. It notes that statutory compliance means complying with applicable laws and regulations. On average, organizations have to comply with around 120 laws. Non-compliance can result in penalties and loss of market credibility. The document outlines how to establish a statutory compliance program, including identifying applicable laws, conducting audits, and issuing compliance certificates. It also discusses the key benefits such as avoiding penalties and adding value to the organization.
This document outlines Toll Brothers' Code of Ethics and Business Conduct. It discusses general guidelines including avoiding conflicts of interest and the appearance of conflicts. It prohibits employees from certain activities without approval if they present conflicts, such as working for competitors or accepting gifts over $250 from suppliers. It provides guidance on acceptable and unacceptable business courtesies. The purpose is to ensure business decisions are made fairly and impartially and are not influenced improperly.
The document discusses various aspects related to taxation of Limited Liability Partnerships (LLPs) under the Income Tax Act in India. Some key points include:
- LLPs are taxed similar to partnerships with partners being taxed separately.
- Remuneration paid to partners is allowed as deduction if certain conditions are met.
- Interest paid to partners is allowed as deduction subject to specified limits.
- Conversion of private/unlisted public companies to LLPs is exempt from capital gains tax if certain conditions regarding continuity in assets, liabilities, shareholders and profits are met.
This document discusses several key employment law and tax updates for California employers in 2012, including new laws addressing worker misclassification, discrimination, leave policies, and health insurance coverage. It also provides information on rising workers' compensation insurance costs and strategies for mitigating them. Additionally, it includes tax and benefit limits for 2012 at both the federal and California level as well as information on the IRS voluntary worker reclassification program and complimentary training webinars offered by CPEhr.
The document is a newsletter from the law firm Judge & Priestley LLP providing updates on legal developments. It summarizes that the firm has been recognized in the Legal 500 directory for the high quality of its social housing and debt recovery departments. It also provides brief summaries of several legal cases and new laws relating to issues like competition law, landlord tenant disputes, employment law, and actions against rogue landlords and illegal immigrants.
Rules and regulations for a startup businessSameerShaik43
Starting a business is about getting a lot of things covered. A persuasive business plan is mandatory. If you are following the business rules and regulations, you will be successful. There are several details to attend to before the grand opening of your business. It includes local and state government agencies to assist new business owners with rules and registration information.
An individual who contracts with an entity to perform a service independent of the entity’s management and control is considered to be an Independent Contractor (IC)
This document discusses new certification requirements for overhead rates that will impact engineering and design firms working with the federal government. It notes that firms must now annually certify their overhead cost submissions and proposals to ensure compliance with federal regulations. Non-compliance could result in suspension, debarment, or prosecution. It provides examples of indirect costs that could be deemed unallowable if improperly charged to overhead and advises firms to implement policies to protect themselves, including educating staff on contracting rules and separating unallowable cost accounts.
Commercial insurance risk and liability review, February 2016Browne Jacobson LLP
Our annual review provides a comprehensive review of some of the most important judgments and legal developments during 2015 and our analysis of some of the changes on the horizon for 2016 and beyond. We have covered a lot of ground this year so I hope you will be able to find a number of updates that are relevant and useful to you.
If you would like to know more about any of the topics, please feel free to contact any of the authors of the articles.
https://www.brownejacobson.com/insurance/training-and-resources/legal-updates/2016/01/commercial-insurance-risk-and-liability-review-2015-2016
How to stay 100% compliant when hiring and paying your global workforceNick Ganzha
Hiring globally distributed teams of IT developers? Want to know how to onboard and pay foreign employees abroad while staying 100% compliant in numerous countries?
It's especially crucial for UK employers to know in light of the new IR35 law.
For more information check out our presentation.
This document provides an overview of essential labour legislation in India. It discusses the historical context and principles behind labour laws, including protection, social justice, regulation, and welfare. The document then classifies different types of labour legislation and provides examples. It also discusses key concepts like principal employers, contractors, and contract labour. The document outlines regulations around registration, licensing, and responsibilities. It discusses protective labour laws and managing industrial relations. Overall, the document provides a comprehensive introduction to India's essential labour laws and regulations.
THE AMENDMENTS TO THE BBBEE ACT 53 OF 2003 AND THE CODES OF GOOD PRACTICE ISS...Werksmans Attorneys
The document summarizes key amendments to the Broad-Based Black Economic Empowerment Act of 2003 and the Codes of Good Practice in South Africa. It discusses:
1) Establishment of a BBBEE Commission to oversee compliance, investigate complaints and fronting practices, and maintain a register of large BBBEE transactions.
2) Definitions added for terms like "knowingly" and expansive definition of "fronting practice".
3) Introduction of criminal offenses for misrepresentation of BBBEE status or fronting, carrying fines and imprisonment.
4) Increased reporting obligations on government entities to consider BBBEE in procurement and develop partnership criteria.
The document outlines the legislative framework and contents of the Revised Codes of Good Practice on Broad-Based Black Economic Empowerment in South Africa. Some key points:
- The Revised Codes were issued by the Minister of Trade and Industry under the Broad-Based Black Economic Empowerment Act of 2003.
- They provide details on the legislative process, definitions, effective date, and transitional provisions between the old and new codes.
- Changes include new thresholds for EMEs, QSEs, and generic entities. Empowering supplier status is now required for procurement points.
- Sector codes will remain in effect until aligned, and many statements from the old codes were not repe
BHW Solicitors Summer Employment Law NewsletterBHWSolicitors
The document is a newsletter from BHW Employment Law summarizing recent changes to UK employment law. Some key changes discussed include:
1) Introduction of fees for employment tribunal claims, with Type A claims costing £160 issue fee and £230 hearing fee, and Type B claims such as unfair dismissal costing £250 issue fee and £950 hearing fee.
2) "Protected conversations" can now be used when terminating employment to avoid legal proceedings, though employers must be careful not to engage in "improper behavior" which could allow employees to submit settlement offers as evidence.
3) A new "employee shareholder" employment status will exchange certain rights like unfair dismissal for company shares worth over £2000
This document provides an overview of contribution requirements for limited liability partnerships (LLPs) under Indian law. It notes that contribution is not required to form an LLP but must be specified in the LLP agreement. Contribution can be in tangible or intangible forms and intangible contributions must be valued by an accountant. The ownership and profit/loss sharing ratios of partners may be different than their contribution amounts. The document also addresses increasing, decreasing, and returning contributions as well as tax treatment of interest paid on contributions.
The document discusses the key differences between a partnership firm and a Limited Liability Partnership (LLP) under Indian law. It notes that an LLP provides benefits of limited liability for partners along with flexibility of a partnership in terms of governance structure. However, concerns are raised about the government potentially subjecting LLPs engaged in large businesses to taxes like dividend distribution tax in the future. The document also examines whether chartered accountants are allowed to form LLPs or convert existing partnerships to LLPs under relevant regulations.
The document summarizes key information for motor vehicle dealers regarding franchise agreements and the current legislative landscape in Australia. It notes that while there is no ideal franchise agreement, recent and proposed changes to laws such as the Franchising Code of Conduct may help improve protections for dealers. It outlines challenges facing the Australian automotive industry and reviews existing legal protections for franchise agreements from unfair contract terms and unjust conduct. The presentation provides an overview of relevant laws and regulations regarding franchise agreements in Australia.
Getting The Deal Through: Financial Services Litigation 2018Matheson Law Firm
This document provides an overview of financial services litigation in Ireland. It discusses the most common causes of action brought against banks and financial institutions, which typically relate to the misselling of financial products and mismanagement of investment funds. It also examines the types of non-contractual duties that have been recognized in misselling claims, such as advisory duties. The document outlines Ireland's statutory liability regime for untrue statements in prospectuses. It notes that Irish courts have generally not recognized an implied duty of good faith in contracts, though certain relationships may imply such duties. Fiduciary duties are more likely to be found in advisory relationships. The document also discusses the treatment of standard form agreements, the ability of financial institutions to limit liability,
Working Through a Limited Company BrochureWendy Church
This document provides information for professionals setting up their own limited company to work as independent contractors or consultants. It discusses why working through a limited company is required, how to set up the company, initial tasks like opening a bank account and registering for taxes, determining an appropriate daily rate, and other regulations and compliance considerations like insurance and record keeping. The specialist accountancy firm Competex offers services to help with all aspects of setting up and running a personal service limited company for independent professionals.
This document summarizes the evolution of Black Economic Empowerment (B-BBEE) in South Africa from its inception in 2003 to amendments made in 2013 and 2015. It outlines the objectives of B-BBEE, major amendments made to the B-BBEE Act in 2013 related to oversight and criminal offenses, and implications of the amended Act for procurement policies, reporting requirements, and penalties. It also describes the classification of entities, scoring methodology, compliance levels, and amendments made to elements like ownership, enterprise development, and the introduction of the "empowering supplier" concept in the 2015 amendments.
The document discusses statutory compliance and why it is important for organizations. It notes that statutory compliance means complying with applicable laws and regulations. On average, organizations have to comply with around 120 laws. Non-compliance can result in penalties and loss of market credibility. The document outlines how to establish a statutory compliance program, including identifying applicable laws, conducting audits, and issuing compliance certificates. It also discusses the key benefits such as avoiding penalties and adding value to the organization.
This document outlines Toll Brothers' Code of Ethics and Business Conduct. It discusses general guidelines including avoiding conflicts of interest and the appearance of conflicts. It prohibits employees from certain activities without approval if they present conflicts, such as working for competitors or accepting gifts over $250 from suppliers. It provides guidance on acceptable and unacceptable business courtesies. The purpose is to ensure business decisions are made fairly and impartially and are not influenced improperly.
The document discusses various aspects related to taxation of Limited Liability Partnerships (LLPs) under the Income Tax Act in India. Some key points include:
- LLPs are taxed similar to partnerships with partners being taxed separately.
- Remuneration paid to partners is allowed as deduction if certain conditions are met.
- Interest paid to partners is allowed as deduction subject to specified limits.
- Conversion of private/unlisted public companies to LLPs is exempt from capital gains tax if certain conditions regarding continuity in assets, liabilities, shareholders and profits are met.
This document discusses several key employment law and tax updates for California employers in 2012, including new laws addressing worker misclassification, discrimination, leave policies, and health insurance coverage. It also provides information on rising workers' compensation insurance costs and strategies for mitigating them. Additionally, it includes tax and benefit limits for 2012 at both the federal and California level as well as information on the IRS voluntary worker reclassification program and complimentary training webinars offered by CPEhr.
The document is a newsletter from the law firm Judge & Priestley LLP providing updates on legal developments. It summarizes that the firm has been recognized in the Legal 500 directory for the high quality of its social housing and debt recovery departments. It also provides brief summaries of several legal cases and new laws relating to issues like competition law, landlord tenant disputes, employment law, and actions against rogue landlords and illegal immigrants.
Rules and regulations for a startup businessSameerShaik43
Starting a business is about getting a lot of things covered. A persuasive business plan is mandatory. If you are following the business rules and regulations, you will be successful. There are several details to attend to before the grand opening of your business. It includes local and state government agencies to assist new business owners with rules and registration information.
An individual who contracts with an entity to perform a service independent of the entity’s management and control is considered to be an Independent Contractor (IC)
There are several disadvantages to temporary agency work including lack of job security, lack of benefits like health insurance, and lower pay. Temporary workers can be let go more easily than permanent employees. They also may not be covered under an employer's health and safety insurance if injured on the job. Contract work also has disadvantages like lack of benefits, need to constantly find new work, and potentially being seen as outsiders by permanent employees. Both temporary and contract work provide less stability and protections than permanent employment.
This document provides an overview and comparison of permanent, contract, and temporary employment options. Contracting typically offers higher pay as contractors are hired for their specialist skills. Benefits of contracting include more flexibility in location, hours, and ability to gain experience by working for different companies. A fixed-term contract is similar to permanent employment but for a defined period, while temporary work involves doing a specific job for a set time and being paid regularly like a permanent employee. Payment terms vary between contracts, fixed-term roles, and temporary work.
White Paper: Complying With Regulations Regarding Temporary Workersss
The use of temporary workers is growing in the United States, now representing 22% of the total workforce. Temporary workers are referred to as freelancers, non-employees, indirect workers, agency contractors, consultants, interns, independent contractors, and many other terms.
Lean Start-up Business Tactics Seminar - HR Issues and Your Start-up UNHInnovation
Inevitably, you will need the services and/or skill sets of other people to get your business running. When you begin to add people to your lean start-up, the initial question will be whether or not each person will be an employee or independent contractor. This seminar will help you understand the pros and cons of each type of relationship, and the legal risks in one vs. the other.
If you hire even one employee, there are HR legal compliance issues you will need to address. This seminar also discusses the HR issues that are most important as you begin to add employees, such as:
-Your obligations under wage laws and employment verification laws
-Approaching incentive compensation
-Protecting your confidential information and trade secrets
How to Avoid Misclassifying Contractors PapayaGlobal
Misclassification of workers can result in fines and damage to a company's reputation, and can even result in a company's ability to hire contracted workers. What steps can a company take to avoid this?
The document provides an overview of a toolkit for hiring independent contractors in a legally compliant manner. It discusses the differences between employees and independent contractors, factors that determine compliance, best practices for finding, screening and onboarding independent contractors, and key elements to include in independent contractor agreements and scopes of work. The toolkit is intended to help businesses understand compliance requirements and successfully manage independent contractor relationships.
20 Factor Test Employee Or Sub Contractordmaaskant
This document gives greater detail on the 20 Factors the IRS and other taxing agencies use during an audit. Much more clear than the IRS publication, but note - not published by the IRS.
The document discusses the implications of the UK's Pensions Act, which introduced automatic pension enrollment for workers starting in 2012. It will require employers to automatically enroll eligible workers into a qualifying pension scheme if they are not already in one. This affects agencies and contractors, as agencies are responsible for enrolling contractors they employ directly via PAYE.
The implications include additional costs for employers to fund pension contributions, as well as significant administrative burdens to manage the pension schemes and enrollment process. There are also challenges around who will bear the financial responsibility - the agency, client, or umbrella company. The document provides options for agencies and contractors to prepare, including agreeing an approach, choosing a pension provider, and complying with their staging date
The document outlines several advantages of working as an independent contractor rather than an employee. It discusses having increased income and take-home pay since contractors can negotiate higher rates. Contractors also have more flexibility over managing their own time, being their own boss, and controlling their work-life balance. They can organize their finances and income tax efficiently. Working various contracts improves skills and makes contractors more marketable. The document also promotes the services of Foremans LLP to help contractors with administration so they can focus on their work.
The document discusses several tests used by courts to determine employment status and distinguish between contracts of employment (employee status) and contracts for services (self-employed status). It examines the control test, integration test, economic reality test, and mutuality of obligation test. It critically assesses whether one single test is sufficient or if a multiple test approach is better. It also explores the consequences of being classified as an employee versus self-employed.
India is facing a demographic challenge as its large young population enters the workforce, but it has failed to provide enough manufacturing and high-skill jobs, forcing many to take low-productivity security guard jobs, squandering the potential demographic dividend; this risks political instability as youth face high unemployment and the economy struggles with low growth and a chronic trade deficit. While India once aimed to emulate East Asia's manufacturing boom that lifted many out of poverty, it has shown reluctance to undertake the economic reforms needed to rapidly create sufficient formal sector jobs.
Put the contract with your employees in black & white. Easy to use Casual Employment Agreement template. Suitable throughout Australia and up to date with the National Employment Standards.
Download this document (and many others!) at LegalZebra.com.au
Get the full template here - http://www.legalzebra.com.au/legal-forms/casual-employment-agreement-template/
Also browse our other documents on Employment Agreements
What to Consider When Exploring New Contracts Healthcare IS
When you’re working independently, understanding the ins and outs of a contract can help save you a headache down the road.
In this SlideShare we cover three scenarios for contract opportunities, as well as situations to avoid.
The new Agency Worker Regulations that come into force in October 2011 are intended to provide temporary agency workers with equal pay and basic employment conditions as directly-hired employees after 12 weeks. The regulations do not change agency workers' status or entitle them to benefits like sick pay or pensions. After 12 weeks, agency workers are entitled to equal pay, working hours, overtime, and leave. Hirers and agencies must work together to determine equal treatment and share information. The regulations are aimed at preventing circumvention of equal treatment through complex anti-avoidance provisions.
Explore the key differences between silicone sponge rubber and foam rubber in this comprehensive presentation. Learn about their unique properties, manufacturing processes, and applications across various industries. Discover how each material performs in terms of temperature resistance, chemical resistance, and cost-effectiveness. Gain insights from real-world case studies and make informed decisions for your projects.
3. 3
GET IN TOUCH
SPEAK TO A MEMBER OF THE
TEAM ON 0800 230 0213
IR35 GUIDE
UNDERSTANDING IR35 AND ITS IMPLICATIONS
As a contractor your IR35 status effectively determines your tax position with HMRC. Contractors working through a
Limited Company, who fall outside IR35, are entitled to receive payment in the form of dividends. Those who fall inside
IR35 are regarded as ‘disguised employees’ for tax purposes and are only entitled to receive payment on a PAYE basis.
WHAT IR35 IS DESIGNED TO ACHIEVE?
IR35, or Intermediaries Legislation, sets out the law relating to the tax treatment of individuals who work through an
intermediary such as a Personal Service Company. To quote HMRC:
“The aim of the legislation is to eliminate the avoidance of tax and National Insurance Contributions (NICs) through the
use of intermediaries, such as Personal Service Companies or Partnerships, in circumstances where an individual worker
would otherwise:
For tax purposes, be regarded as an employee of the client
For NICs purposes, be regarded as employed in employed earner’s employment by the client.”
Prior to the introduction of the legislation an individual could avoid:
„„ Being taxed as an employee on payments for services; and
„„ Paying Class 1 NIC by providing those services through an intermediary.
The worker could take the money out of the intermediary, normally a Personal Service Company (Limited Company), in the
form of dividends instead of a salary, resulting in significant tax savings.
The legislation ensures that, if the relationship between the worker and the client would have been one of employment had
it not been for an intermediary, the worker pays tax and NICs on a basis broadly equal to that an employee of the client
would pay.
The legislation does not render a worker who is caught by IR35 entitled to employment rights (such as unfair dismissal
and redundancy). IR35 only affects a worker’s tax status.
4. 4
GET IN TOUCH
SPEAK TO A MEMBER OF THE
TEAM ON 0800 230 0213
IR35 GUIDE
HMRC DEFINITIONS OF EMPLOYED AND SELF-EMPLOYED
Determining whether a person works under a contract OF service (employment) or FOR services (self-employed, independent
contractor) is key when it comes to applying the tax benefits of self-employment. The fact is that for tax and NICs purposes
there is no statutory definition of either type of contract.
What the parties call their relationship, or what they consider it to be, is not conclusive. It is the reality of the relationship that
matters.
In order to determine the nature of a contract it is necessary to apply the relevant factors and tests the courts have, over the
years, laid down. These have led to a series of questions that provide a general guide as to whether a worker is an employee
or self-employed.
If the majority of answers to the following questions is ‘Yes’, the more likely an individual is to fall inside IR35 and therefore a
‘disguised employee’ of the end client:
„„ Do they have to do the work themselves?
„„ Do they have to work a set amount of hours?
„„ Can someone move them from task to task?
„„ Are they paid by the hour, week, or month?
„„ Can they get overtime pay or bonus payment?
„„ Can someone tell them at any time what to do, where to carry out the work or when and how to do the work?
5. 5
GET IN TOUCH
SPEAK TO A MEMBER OF THE
TEAM ON 0800 230 0213
IR35 GUIDE
If the majority of answers to the following questions is ‘Yes’, the more likely an individual is to fall outside IR35 and be
genuinely self-employed:
The best way to deal with IR35 is not to be in a position where you have to prove you are not a
‘disguised employee’ but to ensure your practices are in line with the criteria for being self-employed.
Ultimately whether you fall inside IR35 on a particular assignment is determined by the specific facts of each situation
and each assignment you undertake will be considered on its own merits based on all of the relevant case law
precedents.
„„ Can they hire someone to do the work or engage helpers at their own expense?
„„ Do they risk their own money?
„„ Do they provide the main items of equipment they need to do their job, not just the small tools that many employees
provide for themselves?
„„ Can they decide what work to do, how and when to do the work and where to provide the services?
„„ Do they agree to do a job for a fixed price regardless of how long the job may take?
„„ Do they regularly work for a number of different people?
„„ Do they have to correct unsatisfactory work in their own time and at their own expense?
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GET IN TOUCH
SPEAK TO A MEMBER OF THE
TEAM ON 0800 230 0213
IR35 GUIDE
BROOKSON’S APPROACH
Employment status is a complex assessment requiring professional, specialist knowledge and experience to undertake
reliably. Brookson offer a review of each new assignment contract and working practices, as well as conducting
reassessments of existing assignments in its services, inclusive of each monthly fee.
Brookson Legal Services are experts in employment law and conduct these assessments. This is because we recognise
the importance and implications of being and remaining compliant with HMRC regulations and we have built robust
systems in conjunction with HMRC to ensure the employment status of our customers.
If you would like to discuss our services please feel free to contact us on: 01925 235723
or email contact@brooksonlegalservices.co.uk
7. 7
GET IN TOUCH
SPEAK TO A MEMBER OF THE
TEAM ON 0800 230 0213
IR35 GUIDE
TOP 10 TIPS
The following tips provide a guide to addressing the implications of IR35.
1. Ensure your contracts are accurate and consistent
It makes little sense having a contract that states that you will be subject to the control of the client, or that the client’s
processes and procedures will apply to you when they don’t in practice. In addition, make sure that the upper level
contract (the contract between the agency and the client) does not contain anything that contradicts your contract with
your agency or the way you intend to work on the assignment.
2. Make sure your client thinks the same way you do
If your client sees you as an extension of its own workforce, the company is more likely to control what you do and
treat you as an employee. Make sure they know that you are engaged for a specific reason and that they treat you
accordingly throughout your assignment. If the client has more work for you, make sure you put a separate contract in
place.
3. Ensure that the client’s representative views you as an independent consultant – not just part of the employed
workforce
This is particularly important where your client representative is different from the individual who hired your services
at the outset of the project. If necessary, provide a copy of your contract to the client representative to avoid any
misunderstandings regarding the extent of the services you are providing.
4. Demonstrate that you are treated differently from your client’s employees – in terms of the services you provide and
how you perform them
Different pay and benefits will not be enough on their own. Flexible working, assignments for other clients, investing
in your own training, development and equipment, working on a specific package of work for a fixed fee and/or a fixed
period are all good ways of showing that you are truly independent.
5. Working as part of a team does not automatically render you a disguised employee of the client
It is essential however, that you agree the scope of the work you undertake at the outset of the assignment. Being
continually allocated further work by the client, particularly without putting in place additional contracts, could show that
you are being treated as an employee. If further work comes up, make sure you put a contract in place before you start
working on it. Quote a fixed price or overall fee estimate up front wherever you can.
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10. Working for multiple clients and investing in your own company is still a good way of demonstrating that
you are in business of your own account
The more clients you work for, the easier it is to demonstrate that you are self-employed whereas only having
one client as your sole source of income for a lengthy period of time may suggest that you are employed by the
end client. To counteract this, pay for your own training, provide as much of your own equipment as possible and
advertise your services on LinkedIn, your website or in magazines like the Yellow Pages.
6. Provide a substitute
Not only does providing a substitute give unequivocal evidence that you are not obliged to offer a personal service, and
therefore cannot be a disguised employee, it can also enable you to profit further from the assignment by supplying
cheaper labour to perform the services on your behalf. It could also give you the flexibility to work on another contract
with a different client, further increasing the income received into your business.
7. Project based assignments are significantly better than period based ones
Being engaged on a specific project enables you to quote a fixed fee and work flexibly as long as deadlines and project
completion dates are met. Being engaged on an ongoing basis may suggest you are only there until the client recruits
a permanent employee to do your job. This may indicate that the company is treating you as if you were that individual
until someone permanent comes along which can potentially make you a disguised employee.
8. Manage your own assignments
Employees are generally contractually obliged to give up their time for a fixed number of hours each day/week but, as
an independent contractor you should determine the hours required to complete the work. It is important that you take
control over managing your assignments and don’t rely on being allocated work. This should also enable you to quote a
fixed fee for the project and/or undertake work for other customers alongside your assignments.
9. Calling yourself a contractor and not receiving holiday or sick pay are not enough on their own to prove that you are
not an employee of the client
Your working practices and other terms of the contract must indicate that you are self employed. This could involve
you showing that you have financial risk in terms of bad debts, rectifying work at your own cost and investing in your
company, all good ‘badges of trade’.
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IR35 FAQS
WHAT IS IR35?
IR35 is the industry name for legislation originally contained in Schedule 12 of the Finance
Act 2000. This legislation, also known as “The Intermediaries Legislation” states that if you are treated as a disguised
employee of the agency or client, your income on that assignment should be taxed as an employed earner (i.e. subject
to income tax and national insurance contributions).
IS THERE A LEGAL DEFINITION OF AN “EMPLOYEE” OR AN
“INDEPENDENT CONTRACTOR”?
No, there is no statutory definition of either an “employee” or “independent contractor”. Case law, established by the
courts over previous years, is used to determine whether someone is treated as an employee (engaged under a contract
of employment) or a self employed, independent contractor (engaged under a contract for services).
HOW CAN I AVOID IR35?
There is no way around IR35 if you work through a Limited Company and draw dividends from the company’s profits.
However, there are ways of ensuring compliance with IR35 and this is something Brookson Legal Services is on hand to
assist you with, as part of our all-inclusive Limited Company service.
HOW DO I GET THIS RIGHT FROM THE BEGINNING?
Brookson Limited Company customers benefit from unlimited IR35 reviews via Brookson
Legal Services, to ensure that you comply with your tax and NI obligations, whist working on assignments as a Limited
Company contractor.
Brookson Legal Services use the same employment status tests utilised by HMRC which are designed to assist in
establishing whether your working practices support you being an independent contractor, or whether you are being
treated by your client as a disguised employee.
The initial review is available to customers when they first start a project or assignment. A refresher review is available
to customers when they have been on a project or assignment for six months or more to ensure that your working
practices continue to support you taking dividend income from the assignment with your client.
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HOW IS AN “ASSIGNMENT” DEFINED?
An assignment is a fixed project or body of work you undertake with a client. Ideally each assignment you undertake
should be for a specific body of work or for a fixed period of time as opposed to a rolling contract. This is because
“rolling contracts” suggest that you are at the beck and call of the client which means that you are more likely to fall
inside IR35.
HOW LONG SHOULD MY NOTICE PERIOD BE?
A short notice period (or no notice period at all) can indicate that your company carries some financial risk in the
contract. This is because there is a risk of losing the assignment with little warning. This is the opposite of how an
employee would be treated as employees are more likely to have a lengthy notice period to terminate their employment.
Therefore, a short notice period will help you to demonstrate that you are not treated as a disguised employee of your
client.
I HAVE NOT RECEIVED A CONTRACT FOR THE ASSIGNMENT I AM
WORKING ON AND I AM NOW WORKING MY NOTICE, DO I STILL NEED
A CONTRACT?
Even though notice has been served and the contract is due to come to an end, services have been provided under a
contract and so it is still important to obtain a written document which demonstrates your independence from the client.
HOW LONG DOES AN IR35 REVIEW TAKE?
As part of Brookson’s all-inclusive Limited Company service, Brookson Legal Services reviews all documents within 5
Days of receipt. If the review reveals queries which Brookson Legal Services would like to discuss with you, they will
telephone you to clarify the queries as quickly as possible.
IS IR35 AFFECTED BY WHO MY CLIENT IS?
Yes. If your client is a Public Sector body, they will be responsible for assessing your IR35 status and ensuring your
appropriate tax is deducted at source where you are caught by the IR35 rule.
In the 2018 Autumn Budget, the Government announced that the Private Sector will be subject to similar changes to
IR35 to those implemented in the Public Sector in April 2017. These changes will take effect from April 2020 and a
further Consultation will be launched in 2019 to fine-tune how it will work. This means that the obligation to determine if
a role is inside or outside IR35 and ensuring the appropriate amount of tax is paid, will be changing in April 2020 and will
sit with the end-hirer and the fee payer. Until then, you will still be responsible for ensuring IR35 is considered on all of
your assignments and bear the liability for ensuring appropriate tax is paid on your income.
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I AM WORKING ON VARIOUS PROJECTS AND HAVE A CONTRACT THAT
IS REVIEWED ANNUALLY; DO I NEED TO DO ANYTHING TO PROTECT
MY IR35 STATUS?
Ideally, you should have a contract for each project or body of work you undertake. Quote a fixed fee per project if
possible and ensure that you obtain a contract for any other work you undertake for the client. Project based contracts
are significantly better than period based contracts.
WHAT ARE THE ADVANTAGES OF GETTING AN END DATE FOR THE
PROJECT I AM WORKING ON?
When considering this matter from an IR35 perspective, it is important that we first consider the purpose behind not
putting an end date on the contract. Usually, the end date is left open where you are not engaged for a specific project.
In which case, you will be engaged on an “ongoing” basis, usually to fill a gap in the client’s workforce whilst it navigates
a particularly busy period or tries to recruit a permanent employee with the necessary skills and qualifications. In these
cases, you are likely to struggle to defend an IR35 challenge on the basis that you have been brought in to carry out the
function of an employee for the client.
Therefore, a lack of an end date on the contract may be of little help to you from an IR35 perspective and will generally
raise more questions than it answers.
Conversely, where you are engaged on fixed projects or fixed bodies of work, you are in a far better position to defend
an IR35 challenge than those contractors who are engaged for a period of time. Where the project has an estimated or
fixed completion date, this should be noted on the contract even if it is referred to as an “estimated” completion date.
The date can be extended should the project run over so the end date need not act as a guillotine to the assignment.
This will indicate that you have been engaged for a specific period/body of work and once that work is complete the
relationship comes to an end. Any further work will require another contract to be issued. The end date will therefore
go some way to demonstrating that there is no mutuality of obligations between you and your end client as there is
no obligation to provide further work when the contract comes to an end as it was envisaged at the outset that the
relationship would cease when the project was finished.
Finally, it is important to retain some perspective on this issue. Having an end date may provide some assistance to
you in defending an IR35 challenge, but it won’t win the case on its own. It is essential that all other features of the
relationship between you and your end client are consistent with that of a self-employed relationship as opposed to
employer/employee. HMRC will consider issues such as control, substitution, being in business of your own account,
financial risk, integration and the ability to profit from your own sound management as well as mutuality of obligations
as discussed above.
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There have been several tests used to establish whether someone is engaged as an employee, some of which are as
follows:
IS THERE A DIFFERENCE BETWEEN THE DIFFERENT IR35
TESTS “IR35 INDICATORS”, “BADGES OF TRADE” OR
“EMPLOYMENT TESTS”?
No – they are just different ways of referring to the tests that have been established by the courts to determine
whether you are engaged under a contract of service (i.e. a contract of employment) or a contract for services
(i.e. a self employed contract).
WHAT ARE THE EMPLOYMENT TESTS WHICH HAVE BEEN
ESTABLISHED BY THE COURTS?
„„ Can you provide a substitute?
„„ Are you subject to the client’s direction, supervision or control?
„„ Is there mutuality of obligations between you and your client?
„„ Do you bear any financial risk?
„„ Do you invest in your own business?
„„ Is your income subject to tax and national insurance at source from your client?
„„ Do you provide your own equipment and training?
„„ Do you recieve holiday/sick/maternity pay from your client?
I HAD AN IR35 REVIEW AT THE START OF MY ASSIGNMENT
WITH THE CLIENT OVER SIX MONTHS AGO, DO I NEED
ANOTHER REVIEW?
Yes, ideally you should have a review of your working practices at least every six months even though you may think
nothing has changed.
Having a review every 6 months will enable you to ensure that your working practices accurately reflect the contract that
you agreed at the outset of your assignment. It is essential that your working practices continue to reflect that you are
an independent contractor and that you are not being treated as just an extension of your client’s workforce.
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I WORK FOR MULTIPLE CLIENTS AT ANY ONE TIME. DO I
STILL NEED TO HAVE AN IR35 REVIEW?
It is recommended that you have a review for each client you work for to ensure that you remain compliant with IR35 on
each assignment.
MY CONTRACT IS FOR A FIXED PERIOD WHICH HAS NOW
EXPIRED BUT I AM STILL WORKING FOR THE CLIENT.
SHOULD I GET A NEW CONTRACT?
Yes, you should obtain a contract to cover the additional period and ensure that it accurately reflects the project/body of
work you are working on.
WHAT DOES IT MEAN IF I AM “CAPTURED BY IR35”?
In most cases the most tax efficient way to withdraw funds from a limited company is by taking a mix of directors fee
and dividends.
However, where a contractor is being regarded as a disguised employee and therefore caught by IR35 (i.e. the
contractor is treated by the client in a manner which is similar to how HMRC would expect an employee to be treated)
this will mean that the contractor is viewed, in all but name/pay/benefits, as an employee of the company. The
contractor must therefore pay tax and national insurance similar to an employee and as a result cannot benefit from the
national insurance savings associated with drawing dividends.
WHAT DOES IT MEAN IF I AM “NOT CAPTURED BY
IR35”?
If an IR35 review concludes that your contract terms and conditions along with your working practices support your
status as a self-employed independent contractor, there is no further action required at this point. However you will need
to undertake a new IR35 review either in six months time (if you are still on the same assignment) or when you change
assignments, whichever is sooner.
Brookson Legal Services refer to this outcome as “Taxed as Self Employed” to make it clear that you are only required to
pay corporation tax on your dividends.
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WHAT DOES IT MEAN IF THE OUTCOME OF MY IR35 REVIEW IS
‘CAUTION’?
This is where your working practices appear to support a self-employed status but your contract Terms and
Conditions do not.
As part of Brookson’s all-inclusive Limited Company service, Brookson Legal Services will identify the issues in your
Contract and we will contact you to discuss their findings.
The status of the assignment will be given as caution. In this case, there may be further steps you can take to resolve
the uncertainty and these will be explained to you.
Brookson Legal Services can negotiate the contract with your agency or end client. However, if you prefer to do
so Brookson Legal Services can provide you with the necessary advice for you to negotiate the contract with your
agency or end client yourself.
WHAT ARE THE POSSIBLE OUTCOMES OF AN IR35 REVIEW?
There are three possible outcomes following an IR35 review:
„„ Taxed as PAYE (captured by IR35) - a deemed payment calculation may be necessary or you should pay PAYE on
your income from that assignment;
„„ Taxed as self employed (not captured by IR35) - you can continue to receive dividends from the company without
deduction of additional tax and National Insurance Contributions.
„„ Caution outcome i.e. there are a few items which HMRC may query with you, which point towards being caught by
IR35 that you may wish to address, but overall your contract and working practices point to being self employed
which may be sufficient for HMRC in the event of an enquiry into your company.
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IF MY ASSIGNMENT IS CAPTURED BY IR35, WHAT DO I NEED
TO DO?
If the assignment is shown by a review to be captured by IR35, your tax position changes. Previously, this income
may have been taken as a “dividend” from the company and accounted for accordingly. However, in order to comply
with IR35, you will now need to account for this income differently and pay any associated liabilities for income
previously received and income received for the remainder of the assignment.
Therefore, there will be additional tax for your company to pay. Any PAYE due relating to payments received into
your company bank account in relation to this assignment before your IR35 status was confirmed will need to be
recalculated and your year-end accounts and tax returns will need to be prepared (and previous years’ amended if
income from the assignment has already been included on returns submitted to HMRC or Companies House) on the
basis that the assignment is caught by the IR35 legislation.
HOW WILL I KNOW IF MY CONTRACT IS INSIDE/CAUGHT BY
IR35?
Ask an expert to review it for you. They know the clauses that demonstrate IR35 compliance and what to look out for.
Unlimited IR35 reviews are available to all Brookson One Limited customers.
BEING CAPTURED BY IR35 IS NOT THE END OF
CONTRACTING?
It really is not the end of the world to be captured by IR35 and the earlier in your assignment that you have a review, the
better placed you will be to deal with it.
Whilst being captured by IR35 will result in you incurring higher NIC liabilities in respect of the income received from
your captured assignment, it doesn’t mean that you should stop working through your limited company. There are still
significant benefits to continuing to work in this way as opposed to working via an umbrella company or working on the
agency payroll, including:
„„ Flat Rate VAT benefit
„„ Flexibility in working arrangements
„„ Ability to put business expenses through your company
„„ If you are a Private Sector worker, there is also a flat rate 5% expense allowance deduction available to reduce the
PAYE/NICs paid
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The scary stories of contractors closing their companies because of IR35 usually occur where the contractor has
ignored IR35 for some time and is faced with a large PAYE and NIC bill from HMRC, along with additional interest and
penalties for not paying the additional tax in the tax year it was owed. All of this can be avoided by having an IR35
review early in the assignment and continuing to have regular reviews to ensure things have not changed.
WHAT IS THE MSC LEGISLATION?
The MSC legislation affects composite companies and companies which are managed and controlled by advisors
rather than the directors/shareholders of a company. The MSC legislation does not make these companies illegal;
it merely requires the company to operate as if IR35 applied to income paid by the company irrespective of an IR35
review. Essentially, to pay a little more tax and NICs than it would usually do if it was outside of IR35.
WHAT IS A PERSONAL SERVICE COMPANY (PSC)?
There is no legal definition of a PSC, however, it is generally accepted that a PSC has a sole director and 1-2
shareholders.
HOW DOES IR35 AFFECT UMBRELLA COMPANIES?
IR35 does not apply to umbrella companies as they do not pay dividends to its employees. All income is taxed on a
PAYE basis, thus making IR35 redundant.
CAN I INSURE MYSELF AGAINST ANY COSTS OR TAXES?
There are insurance products available, but these products require you to undertake IR35 reviews with reputable
solicitors or accountants for the policy to be effective. With Brookson, you have the peace of mind around IR35 from
the reviews Brookson Legal Services undertake and you can rely on the tax promise if you are investigated by HMRC.
SHOULD I TAKE OUT IR35 INSURANCE?
This depends on how much your trust the IR35 review undertaken by your professional advisor. It isn’t necessary in all
instances, but we appreciate there is certainly a place for this type of insurance in the market place. However, most
insurance policies require you to seek professional advice in relation to your IR35 status and you should ensure that
you follow any professional advice you receive.
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WHAT WOULD HAPPEN IF I’M INVESTIGATED, HOW DO
BROOKSON HELP?
If you have had a full IR35 review with Brookson Legal Services, we will have to hand all of the information required for
the investigation with HMRC. Whilst we may look to clarify some elements of the assignment and we will be in contact
with you throughout to ensure you are kept up to date, we will deal with HMRC’s queries directly on your behalf and at
no extra cost to you.
If you have not had a full IR35 review with Brookson Legal Services, we will be happy to liaise with HMRC on your
behalf, but we are likely to require more information from you in order to do so. There may also be additional fees
for undertaking this work and they will be agreed on a case by case basis depending on the number of assignments
undertaken during the period under investigation and the anticipated volume of work involved.
I THOUGHT THAT I WAS OUTSIDE IR35 AND NOW THINK I’M
CAUGHT. WHAT SHOULD I DO?
Depending when you found out about the error, there are two ways of addressing this:
„„ For current year accounts: we will adjust the amount of tax and National Insurance
„„ Contributions you pay on the income received from an assignment. We will rerun the payroll on a captured basis
taking advantage of the 5% discount HMRC provides to businessespaying tax in this way. This is not available
when your client is in the Public Sector.
For previous year accounts: We will revise the PAYE documents and company accounts but
there may be penalties and interest levied
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ARE ALL CONTRACTORS (TEMPORARY WORKERS) INCLUDED
UNDER IR35?
Only if they work through a Limited Company and receive dividend income.
If I have worked for a client before will I be captured by IR35?
This depends on the capacity in which you worked for the client previously.
If you were employed with the client previously – you are at a high risk of being caught by
IR35 on this assignment unless you can distinguish between the roles undertaken as an employee, compared with
your current assignment.
If you were engaged as a self-employed contractor/Limited Company contractor/umbrella employee with the client
previously – you are at a lower risk of being caught by IR35. It is still important to demonstrate that you are treated
differently by the client compared to way the client treats its employees.
HOW CAN I STRENGTHEN MY IR35 POSITION?
Have an IR35 review with an expert and talk about your personal circumstances. Brookson Legal Services have lots of
ideas to strengthen your IR35 status and we are happy to share them free of charge.
WHAT SERVICES CAN I OBTAIN FROM BROOKSON LEGAL
SERVICES?
We have negotiated the following discounted rates with independent law firm and employment specialists Brookson
Legal Services for all Brookson Limited Company customers:
„„ IR35 refresher review
„„ IR35 contract negotiation
If you are interested in any of the above services or if you require any additional legal services,
please feel free to contact Brookson Legal Services on contact@brooksonlegalservices.co.uk.
„„ IR35 review
„„ Draft terms of business contract of employment (to enable your company to employ staff)
„„ Sub-contractor agreement
„„ Commercial review of terms and conditions
Free
Free
Free
£149+VAT
£199+VAT
£199+VAT