The changes to off payroll rules were originally introduced back in 2020 to ensure somebody working like an employee, but through a company, pays similar levels of tax to an equivalent employee. The emergence of Covid 19 halted the changes coming into force, but from April 2021 they are in place. Noncompliance was forecast to cost the treasury around £1.3 Billion by 2023/24, so understandably, they are taking it very seriously.
If you engage with contractors through PSC’s or other intermediaries, you will need to assess whether the rules apply. HMRC have developed an employment status tool (CEST) to determine whether a contract falls inside of IR35.
How Can We Help
If you believe you may have contractors inside of IR35, and are unaware of the payroll obligations, and would like to discuss, we can help
If you are fully aware of the obligations and would like assistance setting up, and running a new PAYE solely to satisfy your IR35 obligations away from your core business by a team of payroll professionals
The penalties for non-compliance are real. You don’t have to be knowingly misreporting IR35 statues, but merely negligent to be hit with a fine. Cooper Weston’s team of payroll experts are here to help.