Preparing for IR35 changes
IR35 changes are set for implementation in April 2020, impacting an estimated 900,000 UK-based limited company contractors in the private sector. Many independent contractors are worried about how they can retain their career contractor status and mitigate their risk around these changes. At Procorre we’ve been helping a number of consultants within our network to fully comply with the legislative changes whilst retaining their contracting independence, through comprehensive support services.
1. Speak to your client(s)
Recent developments to IR35 legislation has shifted more responsibility onto employers. If their self-employed workforce are made to become PAYE employees then there is a chance that both parties may have to foot a backdated tax bill for the previous time that the contractor has been working there. Speak to your client(s) and find out their plan for IR35 as soon as possible.
2. Control over your contract
IR35 will see more stringency towards the working relationship between clients and contractors. How much control do you have over your contract? If your client is picking the hours, days and locations of your contract, then you are more likely to fall under employment status.
Are you using your own equipment when working on your contracts? If you are using your own computer and equipment then you are more likely to fall outside of employee status. IR35 will look at numerous employee benefits and will include the provision of equipment within this.
4. Do you have multiple clients?
Naturally, invoicing multiple clients throughout the tax year is more likely to help you retain your career contractor status. If you are working on a single contract, then take time to look for other opportunities where you can in order to retain your independence.
5. Where are you working?
Are you working remotely or within a single office? If you are based within the office of one of your clients then you are more likely to be considered an employee under the eyes of IR35. If you have multiple clients, then consider working remotely or from other client’s offices from time to time.
6. Your limited company
Are you a lone freelancer? If so, then perhaps it’s time to grow your team. Bringing on more talent into your limited company or simply collaborating with other contractors will help to ensure that you are viewed as an autonomous business entity, helping you to retain your status.
At Procorre, we provide a comprehensive IR35 risk assessment service as part of our consultant support packages. If you are still concerned about the upcoming regulations then give us a call today and discuss your concerns with a member our team. Through Procorre, you can receive your IR35 compliance risk certificate and ensure the retention of your independent status as you continue working on new contracts and projects globally.
Learn more about our services here.
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A blog by Matthew O’Donnell