IR35: Move forward with confidence
Vetro has teamed up with Workr to keep you compliant
Businesses are losing out on talent. Unable to assess contracts on a case-by-case basis, they’re being passed over for competitors or running the risk of penalties. But we’ve got the solution, Vetro has teamed up with Workr to keep you compliant, review your supply chain.
Why is it changing?
HMRC felt that too many businesses were getting away with underpaying tax. So, in April 2017, contracting in the public sector changed. It is now the public authorities themselves who determine the status for each project: inside IR35 or outside IR35.
From there, they issue a ‘Status Determination Statement’ to the recruitment agency to either agree or disagree with the status, before forwarding it to the contractor or freelancer to do the same.
What about the private sector?
From April 2021, medium and large businesses will need to determine the status of all their contractors. For now, small businesses are still exempt.
If your contractors are found to be operating within IR35, Income Tax and NICs will need to be deducted from their salary. You can check IR35 status with tools like CEST.
What does this mean for my business?
In terms of future contracts, you have two choices:
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Class everyone as inside IR35
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Judge them on a case-by-case basis
If an individual is found to have been incorrectly categorised as outside IR35, HMRC will expect to receive the unpaid PAYE tax and NICs, as well as any late payment penalties and interest.
OUR PARTNERSHIP WITH WORKR
As an agency, it’s our responsibility to keep both our candidates and clients in the loop when it comes to the IR35 reform. And it’s for this reason that we’ve partnered with Workr Group.
Workr’s expertise has awarded them Freelancer and Contractor Services Association (FCSA) accreditation, demonstrating to freelancers, contractors, and recruitment businesses that Workr acts both professionally and ethically within the UK tax, employment, and regulatory laws.
Their compliance team is equipped to effectively assess any contract and protect your business. Here’s how it works…
Easy contract assessment
Few businesses have the time to review every contractor on their books. We help streamline the process so you can still appeal to top talent.
Supply chain review
If you’re unsure of the status of your current contractors, Workr will review your team and advise you on what to do next.
