Reported today on Accountancy Age For the full article visit:
Does IR35 present businesses with an opportunity?
Fear and uncertainty around the impending IR35 changes in the private sector have been well reported, but it could present businesses with an opportunity. Accountants are in a position to advise them how.
In April 2020, IR35 legislation that currently only applies in the public sector will expand to cover the private sector, requiring medium to large-sized companies to determine whether a contractor falls inside or outside IR35 parameters.
Currently in the public sector, it is up to the contractor's client to determine whether IR35 applies to a contractor, and if it does, they must add the contractor onto their payroll and deduct both income and National Insurance from their payment.
The same will apply in the private sector on 6 April 2020, resulting in organisations that will fall within the scope of the legislation working to audit their current use of contractors in preparation of the change.
The fears and uncertainty around this change have been well reported. High profile cases of BBC presenters being required to pay hundreds of thousands of pounds worth of back taxes have shown how contractors can be strung by IR35, and there have been calls for the government to scrap the legislation.
But are there positives that businesses can take from the change? Research from business management firm Sullivan & Stanley (S&S) suggests that IR35 could present an opportunity for businesses to review and improve systems, with 47% of the 500 organisations surveyed by the firm taking this vi
0 Comments