IR35 in a nutshell

On Tuesday the 6th of April 2021, the new tax year starts. Do you know what that means? IR35 changes will be coming into effect!
In 6 days, the new off-payroll workings rules will be rolled out
Preparation is KEY here. Here’s what you need to know in a nutshell:
  • Changes come into effect on April 6th 2021, when the next tax year begins
  • If you’re a contractor or freelancer, or hire either – you NEED to pay attention to these changes
  • Are you hiring, or are YOU, a disguised employee? Disguised employees are contractors/freelancers whose limited company is engaged on a contract for services, and is being treated as an ’employee’ by the end client
  • Should you be paying PAYE or NI contributions to the UK Government rather than taking things through a limited company and paying yourself through dividends in a more tax efficient way? HMRC want to avoid if a person really should be treated as an employee, but is working as a contractor through a limited company
  • It is super important to work out whether you are inside or outside of IR35
  • If you’re inside IR35 and not paying the tax you should be, HMRC can fine you

The all in all is, you need to be prepared before these changes come into place

Recent Posts

Latest News Articles