IR35 STATUS DETERMINATION, COMPLIANCE WITH THE ABILITY TO MITIGATE RISK
INSURANCE BACKED IR35 PROTECTION
With an insurance backed IR35 protection service, Optimus Shield can mitigate risk to the whole supply chain and help businesses to transition smoothly ahead of IR35 changes.
Is your business prepared for the impending IR35 changes to be introduced in 2021?
IR35 legislation has been around since 2000 to prevent tax avoidance by those who HMRC deem to be “disguised employees”. However, in April 2021 IR35 legislation is changing and is set to have a large impact on UK businesses who engage with limited company contractors.
How will IR35 changes affect businesses?
At the moment, limited company contractors are responsible for determining their own IR35 status and therefore responsible for making tax and national insurance deductions on each contract they undertake.
However, in April 2021 this is set to change. IR35 status determination will no longer sit with the contractor but will instead become the responsibility of the end client or hirer and be passed down through the supply chain (if a fee payer is in place – generally a recruitment agency) to the contractor. Tax liability, and thus the responsibility of deducting tax and national insurance contributions, will sit with the “fee payer”.
These changes to IR35 are set to have a significant impact on organisations who engage with limited company contractors. With HMRC estimating they will make £1.3 billion by 2023 off the back of IR35 changes and news circulating regarding a contractor drain, businesses are understandably concerned by the expense, resources and talent that IR35 changes will cost their business.
This is where Optimus Shield come in….
How can Optimus Shield provide IR35 protection for businesses?
Optimus Shield can offer IR35 protection that eradicates the worry that comes with IR35 changes and allow businesses to transition smoothly.
By offering an insurance backed IR35 service that mitigates risk to the whole supply chain, Optimus Shield can minimise the cost of IR35 changes for businesses whilst also ensuring they can maintain a competitive edge within their marketplace, working alongside the top contracting talent.
Optimus Shield’s IR35 protection service:
- Determines the IR35 status of a contract
- Produces the government required status determination statement
- Offers an end to end payroll process for all eventualities
- Is supported by both legal and tax opinions
- Includes comprehensive insurance cover to mitigate all risk from your supply chain
- Provides personal protection insurance for the contractor in the event of any HMRC investigation.