What is IR35?
As of April 2021, medium and large sized private sector businesses will be responsible for determining the employment status of a contractor’s assignment, deducting any employment taxes due and paying any tax owed to HMRC.
Inside or Outside IR35?
To be inside IR35 means the worker is to be considered, for tax purposes, an employee of the end client and therefore subject to PAYE.
To be outside IR35 means that the worker is operating as a genuine business, and therefore operating outside of the IR35 rules.
Before you engage with a contractor, you must confirm the IR35 status of an assignment by providing a Status Determination Statement (SDS).
A number of online tools are available to help you determine the status check such as, HMRC’s CEST (check employment status for tax).
Nova365 offers a bespoke solution to all clients and candidates when it comes to IR35. We believe that every situation is different, and there are various factors which will determine whether an assignment is inside or outside of IR35.
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An umbrella contracting route will be the best option in this instance. Nova365 can recommend you to a handful of umbrella companies that have been handpicked to give you comfort and ensure you are being provided with the best advice.
To find out what the best solution is for your business.
Get in touch.