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.

1. Member Firm
NEWSLETTERCONTRACTORS NEED TO KNOW
WEEK52
IR35: What
contractors
need to
know
The IR35, the HMRC's name for
off-payroll working and subsequent
taxation, had significant 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.
Continue reading at page 2
� Copyright Taxcare Accountancy Ltd 2020.
Tax Advice That Helps Your Business Grow

2. Member FirmPage 2 of 4 - Taxcare Accountancy Newsletter
Tax Advice That Helps Your Business Grow
The IR35, the HMRC's name
for off-payroll working and
subsequent taxation, had
significant 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.
1. IR35
LEGISLATION
DEVELOPMENTS
Many contractors operate
through their own limited
company, as 'Personal
Service Company'
contractors. While
historically, this group
hasn't been classified as
employees in terms of tax,
HMRC wants to change
this, believing contracted
professionals (and other
limited company
contractors, such as those
in IT) are what they've
dubbed 'disguised
employees'.
From April this year, IR35
changes involve how your
employment status is
established.
IR35: What
contractors need to
know
NEWSLETTERCONTRACTORS NEED TO KNOW
WEEK52

3. Member FirmPage 3 of 4 - Taxcare Accountancy Newsletter
Tax Advice That Helps Your Business Grow
While before, it was only the public sector - if
your client - that could decide your employment
status. Contractors with a private sector client
had their intermediary responsible for this
decision, which meant, if the intermediary was
their own limited company, they could
essentially choose whether they were 'inside'
(employed) or 'outside' (self-employed) IR35.
These were 'disguised employees' who were not
paying the same National Insurance and tax rates
as, unofficially, their colleagues.
2. WHAT DOES THIS MEAN FOR
YOU?
The two most important things that contractors
who were previously outside IR35 need to be
aware of is that your weekly pay will initially
appear to reduce. This is down to National
Insurance and additional taxation coming into
force. Secondly, you need to be aware that HMRC
considers most contractors to be employed, and
therefore taxed as such. Consequently, it's likely
that you'll be considered 'inside IR35'. It's
important that you don't resort to using
umbrella companies to avoid paying the
appropriate tax, and instead, follow the guidance
set out by these upcoming changes.
NEWSLETTERCONTRACTORS NEED TO KNOW
WEEK52
SPEAK TO
TAXCARE
ACCOUNTANCY
If you're an IT
professional,
for example,
and are
concerned
about IR35
changes
affecting you,
speak to a
member of our
experienced
team of
chartered
accountants
and advisors at
Taxcare
Accountancy
today.

4. Member Firm� Copyright Taxcare Accountancy Ltd 2020.
Tax Advice That Helps Your Business Grow
103 Cranbrook Road, Ilford, Essex, IG1 4PU
020 8478 3383 078 6022 4506 info@taxcareaccountancy.co.uk
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