Like it or not, IR35 is heading to the Private Sector. It’s a topic self-employed contractors are already talking about, and it’s no surprise when In Scope assignments will see them subject to income tax and National Insurance Contributions they are not currently required to pay.
Making IR35 determinations
The legislation will require businesses, known as the End Client, to assess each contract assignment and decide whether it is In or Out of Scope of IR35 – fundamentally, if they are engaged in a completely different way to permanent employees.
Assessing the impact of IR35
HMRC are expecting just one-third of current contractors to be impacted by IR35, but to ensure off-payroll contractors want to continue working with your company it’s crucial that you review your existing practices and identify any changes you could make to avoid contractors unnecessarily falling In Scope of IR35.
A recent survey from contractor insurance experts Kingsbridge identified that 41% were self-employed for lifestyle reasons and want to continue with off-payroll working – so contractors will expect businesses to confidently handle IR35 when engaging them.
Contractor workforce review
NRL can provide businesses with a comprehensive IR35 contractor workforce review to evaluate their off-payroll workforce and make recommendations to adapt recruitment processes to incorporate IR35 indicators.
If you’d like to arrange an IR35 contractor workforce review, then contact NRL at IR35@nrl.co.uk, or find out more on the link below.