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
