Come to PAYEme to cut through all the IR35 confusion
What is IR35?
IR35 (The intermediaries’ legislation) was introduced to counter alleged income tax and national insurance avoidance by companies through the use of “disguised” employment.
How does IR35 affect me?
If you are working through your limited company as a contractor and only work for that client you will be considered, (inside) IR35, which means you will be fully taxed as an employee.
PAYEme IR35 Solution
If you sign up with PAYEme you would then become one of our employees and remove the hassle of running a limited company and dealing with HMRC. This would then allow for you to work for multiple agencies or clients without having to go through the determination processes over and over again.
In addition to the above we also offer –
- Open 9am-5pm Monday to Friday
- Personalised service from allocated customer support managers
- Daily Payroll
- Statutory sick pay
- Maternity/Paternity Pay
- Pension Contributions
- Refer a friend scheme
- Professional Indemnity Insurance
- Employer/Public Liability insurance
History of IR35
The intermediaries’ legislation was first brought to public attention as a budget press release by the Chancellor in 1999 and was numbered “IR35” which is where the now famous reference comes from. The legislation came into force via schedule 12 of the finance act on 6th of April 2000.
2017 The Government pushed the responsibility of status determination to all public sector organizations’.
2018 And during the budget Phillip Hammond announced the IR35 Reform change meaning all medium and large private sector businesses will be responsible for setting IR35 status with fee payer responsibilities to be introduced.
2020 Due to the global Covid 19 pandemic it was announced in March that the changes in the 2020 finance bill for IR35 would not be enforced on 6 th of April 2020 but pushed back to April 2021.
2021 IR35 Reform Arrives and all end user clients must now make the decision on your status.
Although todays version has changed somewhat from the 1999 press release, the main constant is that it was introduced as an anti-tax avoiding legislation to identify contractors and businesses looking to avoid paying the appropriate tax by working as “disguised” employees or by those businesses who are engaging workers on a
self-employed basis to disguise their actual employment status.