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IR35 Update: What's the implications for payroll?

IR35 is coming, but what does it mean for payroll? If you’re contracting labour, you may need to employ them directly or use an umbrella payroll solution.

As we move closer to the 6th April implementation, if you are outsourcing labour, you may need to review your current payroll solution.  HMRC are requesting that those contracting labour (aside from direct employment) need to better define the employment status of a worker. They offer. They offer this description:

“The off-payroll working rules can apply if a worker provides their services through an intermediary. An intermediary will usually be the worker’s own personal service company. They could also be a partnership, a managed service company, or an individual.”

As a result, you’ll need to ensure that the status of the worker is clearly defined. It may be that your current process isn’t compliant and will leave you with the option of employing them directly, or using an umbrella payroll company to deliver the payroll on your behalf.

Compliance is key, but there’s still time to get things in order. Unsure where you stand? We’re on hand to help you make sense of IR35 and provide solutions to those who need to make changes.

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.