If your business engages with limited company contractors then you will need to prepare for imminent changes in IR35 legislation to ensure a smooth transition and minimal disruption to your company.
Up until now a contractor has been responsbile for their own IR35 status determination and tax and National Insurance contributions.
However, as of April 2021, IR35 status determination will become the responsibility of the end client or hirer as opposed to the contractor. Tax liability will then sit with the “fee payer” who must deduct tax and national insurance contributions and report using Real Time Information (RTI).
As the optimum target for employing contractors, medium sized businesses are likely to spend tens of thousands merely preparing for IR35 changes. Meanwhile HMRC will generate £1.3 billion revenue by 2024 from the impending changes, renenue that is certainly going to come from your business.
Interested to read or listen to our take on IR35 and advice that may help you and your business by April 2021?
Head over to our News page to hear about the latest news stories.
It is without doubt that IR35 legislation changes are going to have a colossal impact on businesses, causing worry and expense in equal measure.
Therefore, medium sized businesses must take preparatory steps now in order to mitigate all risk and protect themselves from legislation changes. By doing so, companies also ensure they can still secure and retain the top talent by providing IR35 protection and security for their contractors.
This is where Optimus Shield come in….
Optimus Shield is the result of heavily invested research and development to tackle the issues now facing the private sector due to changes to the IR35 legislation being rolled out in April 2021.