IR35
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IR35

What is IR35?

IR35 is complex tax legislation introduced in 2000 and now on its 5th iteration. It has been designed to combat tax avoidance by PSC’s (those who would be otherwise classed as an employee). In April 2021, the government are expanding IR35 from Public Sector (off-payroll workers legislation) into the Private Sector. This will apply to workers who operate via PSC (NOT sole traders, umbrellas or PAYE).

Why is this being expanded?

  • Over the last 30 years our economy and employment have changed massively
  • GIG economy, avenues of tax non-compliance are growing
  • HMRC have a view that tax is not being paid correctly with a c.£1.2bn shortfall p.a.
  • No side-stepping routes left for not paying taxes and NIC

What’s changing on 6th April 2021?

  • Clients, by law, must determine the IR35 status for each worker
  • If the assignments falls within IR35 then the 'Fee Payer' (last point of pay usually an agency or an umbrella) has to deduct PAYE, NIC & ENI taxes. Only applies to day rate excluding VAT
  • If the End Hirer does not make a determination, does not pass it on to the agency or makes an incorrect one, then they will be liable for unpaid taxes & NI
  • Fee Payer (agency) will be liable for unpaid tax should they fail to action the determination made by the End Hirer
  • End Hirer has to implement a ‘Disagreement Process’ should a worker not agree with a determination.

What criteria determine IR35 status?

  • Right to Substitution – need to have clear process / permissions / payment set out in contract. PSC has to pay the substitute worker
  • Supervision, Direction & Control (SDC)
  • Financial Risk – defect management / early delivery bonus
  • 'Part & Parcel' of the Organisation – length and frequency
  • Mutuality of Obligation (MOO) – typically exists where you have employment relationship
 May 12, 2021  PMO Analyst

Application Support Analyst - Edinburgh

Competitive

This role will own all production support related... - read more...

  Contract  Edinburgh
 May 11, 2021  Project Manager

Senior Operational Project Manager x 3 (England Based - North, Midlands and South)

£Daily Rate / Outside IR35

Title: Senior Operational Project Manager Summary: This is... - read more...

  Contract  UK Fully Remote
 May 10, 2021  DevOps

Contract Cloud Engineer (AWS) - £500 per day Inside IR35

Role will be operating within or leading a... - read more...

  Contract  Central Belt
 May 7, 2021  Project Manager

International Business Change Project Manager

£450 per day

  Fully remote £450 per day - inside IR35/Umbrella company... - read more...

  Contract  UK Fully Remote
 May 5, 2021  Front End Developer

Front End React Developer

£500 per day

£500 per day - inside IR35 / Umbrella company Initial... - read more...

  Contract  UK Fully Remote
 May 4, 2021  Data Analyst

Anaplan Consultant

Negotiable Daily Rate

Anaplan Consultant. Would you enjoy a technically varied... - read more...

  Contract  UK Fully Remote
 May 4, 2021  Test Analyst

Test Analyst - 6 month contract

£380 per day

£380 per day Inside IR35 Initial 6-month contract... - read more...

  Contract  Glasgow
 Apr 28, 2021  Test Analyst

Senior Test Analyst

405 per day - Inside IR35

£405 per day Inside IR35 Initial 6-month contract... - read more...

  Contract  Glasgow
 Apr 28, 2021  Test Analyst

CRM Test Analyst

£380 per day - inside IR35

£380 per day Inside IR35 Initial 6-month contract... - read more...

  Contract  Glasgow
 Apr 26, 2021  Infrastructure Architect

Infrastructure Designer Contract - Inside IR35

£475 per day

Duties The Infrastructure Design team is responsible for... - read more...

  Contract  Central Belt

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