IR35 STATUS DETERMINATION, COMPLIANCE WITH THE ABILITY TO MITIGATE RISK

ASSESS YOUR CURRENT & FUTURE COMPLIANCE RISK USING OUR INNOVATIVE IR35 STATUS DETERMINATION TOOL

The IR35 changes are estimated to have an impact on over 900,000 UK based limited company contractors working in the private sector. Optimus Shield can help businesses transition smoothly

Is your business prepared for the impending IR35 changes to be introduced in 2021?

If your business engages with limited company contractors, the impending changes to IR35 will have an impact on your organisation. The need for preparation to incorporate the changes in legislation is imperative to ensure a smooth transition to reduce impact.

What is IR35?
‍First introduced in 2000, IR35 was designed to reduce tax avoidance by contractors who HMRC believe to be “disguised employees” – people who work in a similar way to full-time employees but charge for their services using their limited companies to make their business as tax efficient as possible.
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‍Changes due in April 2021
‍Currently, an individual working through their own limited company is responsible for determining their IR35 status on each contract they undertake and make deductions for tax and national insurance contributions in accordance with their IR35 status.

As we know, the government intend to change the way IR35 status is determined going forward. The determination of IR35 status will become the responsibility of the end client/hirer and should be passed down through the supply chain (if a fee payer is in place – generally a recruitment agency) to the contractor. Tax liability will sit with the “fee payer” who must deduct tax and national insurance contributions and report using Real Time Information (RTI).

It is important to understand how the changes to IR35 due in April 2021 will impact your current processes within the business.

If your organisation engages with limited company contractors, these changes will impact you.

Understanding IR35 and the ramifications it will have on your business can be daunting, however your organisation does not want to be liable for owed taxes estimated by HMRC to reach 1.2 billion by 2023 not to mention the possible risk to reputation for non-compliance.

Optimus Shield

Optimus Shield is a unique product specifically designed to support businesses with the imminent change of IR35 legislation due in April 2021. Our highly developed process has the ability to assess the IR35 status of a contract and offers an end to end process for the supply chain – mitigating all risk.

Why use Optimus Shield?

At Optimus Shield, we have invested heavily into research and development supported by tax and legal opinion to provide a product that not only assesses IR35 status of a contract but can facilitate an end to end process for the supply chain. “Delivering Prime Protection”

Our uniquely designed product will assess the true employment status of each contract and will help facilitate evidence-based decisions, ensuring compliance whilst providing you with a competitive edge in your field of expertise.

How Does It Work?

Using Optimus Shield can mitigate risk to the entire supply chain

Individual assessments will help you to retain top talent

Each contract is individually assessed along with the working practices using our unique status determination tool to identify IR35 status.

Once assessment is completed a status determination statement (SDS) is issued to all parties in the supply chain.

Upon determination of the status, Optimus Shield can facilitate a fee payer service for both outside and inside IR35 situations.

Services

Optimus Shield’s unique tool allows you to:

ASSESS YOUR CURRENT CONTRACTS AND ONGOING CONTRACTS

MITIGATE RISK TO YOUR BUSINESS

TRACK ALL CONTRACT ASSESSMENTS AND RESULTS AND STORE IN ONE PLACE

HELPS YOU TO MAINTAIN A COMPETITIVE EDGE IN YOUR MARKETPLACE

Fee Payer Service

Our fee payer service takes on the liability for making PAYE deductions, reporting to HMRC using Real Time Information (RTI) and sending payments to HMRC.

Outsourcing partnering service

Our outsourcing partnering service enables Optimus Shield to take on both the responsibility for making the IR35 determination and tax liability. Optimus Shield will make the relevant deductions based on the assessment and both report to HMRC via RTI and send payments to HMRC.