It’s just around the corner, only 5 weeks away - IR35 is on the horizon. As a result, recruiters and contractors are making changes to their processes to ensure compliance, but be sure the changes are the right ones.
Looking at the HMRC guidelines, HMRC have been made aware of a growing number of ‘tax avoidance’ schemes which are operating illegally.
They often claim greater take home pay but achieve this through loans and high fees. The HMRC article notes:
“Tax avoidance schemes do not work and can result in unintended tax consequences. You could end up paying much more than you were trying to avoid in the first place. If something looks too good to be true, then it almost certainly is.”
They recommend when reviewing your sub contracted status, be sure to check out a company's credentials, experience and whether they are part of a body as a marker of compliance. For more information on this from HMRC, click here: https://www.gov.uk/guidance/tax-avoidance-schemes-aimed-at-contractors-and-agency-workers
Exact Payroll is accredited by the FCSA, and audited by HMRC in addition to holding a gangmasters license. These bodies and organisations ensure our processes are monitored, audited and regulated to ensure full compliance.
We’ll be highlighting different aspects of IR35 over the coming weeks to help you prepare for the changes. Want to know more? Speak to us today.