IR35 STATUS DETERMINATION AND INSURANCE
Businesses are likely to spend tens of thousands simply preparing for the IR35 changes due to be implemented in April 2021. Optimus Shield can help businesses to transition smoothly, reducing company expense and worry.
Are you ready for the IR35 changes to be introduced in April 2020?
Up until now contractors have been responsible for their own IR35 status determination and tax and National Insurance contributions. However, in April 2021 that is all due to change and IR35 status determination will become the responsibility of the end client or hirer. Meanwhile, tax liability will then sit with the “fee payer” who must deduct tax and national insurance contributions and report using Real Time Information (RTI).
It is vital that companies prepare for the changes in IR35 legislation in order to ensure a smooth transition and reduce impact. Our IR35 Status Determination and insurance service can help you do this with full peace of mind.
IR35 Status Determination and Insurance
With upcoming IR35 changes, end clients or hirers must decide whether a contractor is inside or outside of IR35 while ‘fee payers’ must calculate and deduct tax from a contractor’s pay.
If an IR35 evaluation is incorrect, or, the amount of tax paid is incorrect, businesses will face liability which is likely to be costly.
With this in mind, we have created our unique IR35 Status Determination and Insurance service which includes:
- A status determination statement
- Insurance cover for the legal costs relating to the contract in question of any investigation by HMRC up to an annual limit of £20,000.
- Personal protection insurance for the contractor relating to any investigation by HMRC.
In this way we can help business remain compliant when IR35 legislation changes come into play whilst providing insurance and reassurance to contractors and businesses alike.