IR35 for our clients

IR35 is a complex tax law that has been around for some years. However, it is being regularly updated as part of a drive to ensure that all workers are being taxed as fairly as possible and to remove differences in benefits and tax treatment. The latest iteration of the regulation went live on 6th April, with penalties for those who do not comply. For businesses, the implications are significant and rethinking may be required for the use of contractors.

What’s changed as a result of IR35?

The IR35 tax legislation has already gone through a number of iterations. Essentially, it requires 'disguised' employees to be classed as employees for tax reasons, instead of self-employed contractors. So, what is a 'disguised employee?' For tax purposes, it's an individual working in a similar way to a peer employed within a business, with the difference being that they bill their services via their own Limited Company. 

Who does the change affect?

The important thing for businesses to know now is that the changes already made in the public sector are now being applied to the private sector, and from 6th April 2021, businesses hiring in the private sector became responsible for assessing the status of any freelancer or contractor under IR35. This is a significant change because previously it was down to the contractor themselves to determine whether or not they were a 'true' self-employed contractor or freelancer, or a hidden employee.

It's important to note that HMRC is likely to carry out investigations into businesses that they believe may not be in compliance with the new law. This means that businesses need to act now to embed software systems into their business that allow them to manage IR35 regulations and to assess their freelancers and contractors.

The importance of having an IR35 solution

Business talent partner Cento offers a service that includes a ready role definition (for roles either falling within or outside of the IR35 framework), which can then be insured as necessary via a third party. 

The service provides a full review of your business' freelance and contracting roles so that you can ensure you are acting within the regulations and that your future freelance recruitment is completely compliant. The net effect of IR35 advice from Cento is that your business will have a compliant solution, with full assurance that you are operating within IR35 guidelines and insurance to protect you against any claims. 

Find out more

Don't take the risk with your business compliance - or risk being investigated if you aren't yet ready to adjust your recruitment processes to IR35 regulations. To find out more about our ready-made business recruitment solution, from leading recruiter and talent solutions provider, please
contact Cento Group - call Head Office on 01509 615 290 or email admin@centogroup.com.

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