IR35 was first introduced in 2000 with the aim of reducing tax avoIf your construction company 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, construction workers, and projects.idance by contractors who HMRC believe to be “disguised employees”. Essentially, this was aimed at 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.
Currently, contractors working in the construction industry are responsible for their own IR35 status determination. From here they must then make their own tax and NI contributions.
However, this is all about to change. 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).
The construction industry relies heavily on contractors. The successful completion and punctuality of projects often depends on them. Therefore, IR35 protection for construction workers is vital to keep the construction industry moving but also to ensure compliance for construction companies, agencies and contractors.
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IR35 legislation changes are set up massively impact construction companies, causing worry and expense in equal measure.
Therefore, construction companies must take preparatory steps now in order to mitigate risk to the whole supply chain and protect themselves, their contractors and their projects from legislation changes. By doing so, companies also ensure they can still secure and retain the top construction talent by providing IR35 protection and insurance for their contractors.
This is where Optimus Shield come in….
Optimus Shield offer a service that:
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.
