Although strictly speaking there is no such thing as an “IR35 accountant”, any accountancy firm worth its salt these days should have members of their team who are experts on IR35 legislation and are generally very well-versed on the subject of contractor accountancy and IR35 compliance.
At Perrigo Consultants we have a team of specialists who have an in-depth understanding of the complexities surrounding IR35 and are here to advise and support you throughout the process.
What is IR35 legislation?
IR35 legislation was first introduced in April 2000 and is designed to prevent contractors operating as ‘disguised employees’. Disguised employment is the term used to describe the process of essentially having a full-time permanent position at a firm but undertaking that role as a contractor working for their own limited company. The benefits of doing this, prior to the introduction of the legislation, were a reduction in tax liability and in national insurance contributions.
What do IR35 rules mean for you?
If you are working on a contract and that contract carries the same levels of responsibility, risk, control and liability as a permanent employee, you would then be classified as having fallen inside of or having been caught by IR35 legislation. Therefore, you would have to pay the full amount of tax and National Insurance contributions, as well as having reduced expenses, resulting in a not insignificant reduction in your earnings.
Trading through your own limited company
If you are caught out by IR35 tax rules, you may be wondering if there is any benefit in trading through your own limited company. The fact is, if your contract is within the private sector, it may still be worth it. If your contract lies within the public sector, however, new rules brought in on 6 April 2017 mean that the way that IR35 is enforced moves the responsibility away from HMRC and places it firmly on the end client, in other words, on the public sector body in question, so the issue is taken out of the contactor’s hands.
How can Perrigo Consultants help you with IR35 tax rules?
At Perrigo Consultants, we have a number of accountants who are IR35 experts. This means that they are 100% up-to-date on all the latest legislative changes and guidelines on IR35 law. They know exactly how your business will be affected by IR35 and what you can do to stay compliant.
Obviously, the payments you make to HMRC are affected by where you fall within IR35 contract legislation, so it is therefore extremely important that you get the best available IR35 advice and that your accountant is well informed on the matter.
Get in touch
Perrigo Consultants are not only fully qualified Chartered and Certified (ACCA) Accountants and Chartered Tax Advisers (CTA), but we are also specialists within this area, so for the best IR35 advice, give us a call on 01299 488860 today. We would be happy to assist you.