If you are involved in hiring contractors or providing contract services, then you may have heard that that three government departments have now been hit by IR35 tax liabilities because of incorrect assessments. The consequence of getting their IR35 assessments wrong has resulted in over £120m in fines.
Annette Wyld, Head of Finance at Pure says, “It’s important that businesses have a robust IR35 compliance process in place. This should include a review of working practices and the written contract as part of the assessment, as well as carrying out appropriate due diligence of the supply chain”.
HMRC have clearly shown that compliance is high on the tax office agenda and they are certainly not holding back from applying fines – even within their own family.
IR35 is something that must be done right.
Whether you are an organisation or a contractor, there are significant financial consequences of getting assessments wrong. It’s never been more important to ensure you are compliant and mitigate against risks and we believe we have the best tool for the job.
We’re working closely with our clients and contractors to continue to provide recruitment services that comply with the new off-payroll rules (IR35). We believe that our IR35 status tool will give businesses the confidence to continue to work flexibly with individuals who can provide services through their own limited companies or via agencies.
Our comprehensive IR35 solution is available to our clients and contractors. With our partners Kingsbridge, we can use the status tool and access to IR35 tax specialists to effectively manage the changes to the off-payroll rules. This supports our approach to IR35 to help our clients maintain a compliant and flexible workforce.
The online platform offers a hybrid IR35 status assessment that puts the best experience and support into one place for both clients and contractors. With this tool, clients can ensure transparency before and during engaging contractors and equally, candidates will have peace of mind that the placement they are entering into has been accurately assessed.
If it’s a clear-cut case, the tool generates an instant determination, as well as a comprehensive report that pulls through the notable positives or negatives of a given engagement, as well as an official Status Determination Statement (SDS). If it’s a borderline result, the answers given are manually reviewed by Kingsbridge’s in-house IR35 specialists.
To access our IR35 status tool, email email@example.com and we’ll be back in touch to help you.
Read more about our approach to IR35 here.