As the recruitment and supply industry has evolved, so have the tax rules.
Since 1975 recruitment agencies have generally been required to pay employment tax and NICs on payments made to individual agency workers. IR35 has been around since year 2000, and since 6th April 2017 new rules (Chapter 10 “IR35”) have applied to recruitment businesses that supply contractors to public authorities. Other rules apply to ‘false self employment’ and various freelancer and contractor payroll models, and HMRC is set upon its campaign to tackle tax avoidance, and in May 2018 launched a consultation into extending the Chapter 10 “IR35” rules to the private sector, read more….
The rules are complex in many cases. The consequence is that whether or not direct liability for unpaid levels of tax is imposed on businesses or their directors, a plethora of risks are in play ready to catch the unwary.
We are experts in employment status for both general and tax purposes and have worked on this tax area since our inception, often getting involved in discussion with government as part of a consultation, advising clients and representing them where necessary, and occasionally leading challenges to government policy. We offer a range of advice and support services as well as suitable contract templates for use in the context of PAYE, IR35, umbrella and other model arrangements.
For recruitment agencies, hirers and contractors we offer IR35 contract terms reviews as well as representation and advice in the event of an HMRC investigation.
Please contact us with your enquiry.