HMRC publish IR35 factsheet for contractors

HMRC have published a factsheet to highlight the key changes that the amendments to the off-payroll working rules will have on contractors.

• The off-payroll working rules will apply to contractors working through their own personal service company (PSC).
• The off-payroll working rules will apply to contractors providing their services to public organisations or medium or large-sized organisations.
• A medium or large-sized organisation is defined as having a turnover of more than £10.2 million, a balance sheet total of more than £5.1 million or more than 50 employees.
• Medium and large-sized organisations will be responsible for deciding the employment status of contractors for tax purposes.
• Contractors will receive a status determination statement from their hirer, setting out the employment status determination for tax purposes.
• If a contractor disagrees with the result of a status determination, they will have the right to dispute to their hirer. The hirer will then have 45 days from the day of receiving the letter to respond.
• If the organisation determines that a contractor is self-employed for tax purposes, the contractor will remain responsible for meeting their tax obligations.
• HMRC will not use information resulting form these changes to open a new enquiry into earlier tax years, unless there is a reason to suspect fraud or criminal behaviour.

To view the full fact sheet, please click here.

Aspire Comment

This isn’t a technical or in-depth document at all, but provides contractors, who may be struggling to understand the draft legislation and what to expect come 6 April 2020, with a summary of what they can expect.

If you would like to discuss the changes IR35 may have to your business, get in touch on 0121 445 6178 to speak to an advisor.

Join us at one of our “Operation Compliance” seminars where this topic will be discussed at length on Tuesday 11 February 2020 at The Holiday Inn, Coram Street, Bloomsbury, London, WC1N 1HT or Thursday 13 February 2020 at The Belfry Hotel & Resort, Lichfield Road, Sutton Coldfield, B76 9PR.

Tickets are now on sale. Book early to avoid disappointment. Places will be allocated on a first come first served basis.

To purchase a ticket for the London venue, please click here.

To purchase a ticket for the Birmingham venue, please click here.