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IR35 Seminar – Changes to Off-Payroll Working Rules
1 Byrom Place Spinningfields Manchester, Lancashire M3 3HG United Kingdom
IR35 was introduced in April 2000. It broadly means that when a worker is engaged through an Intermediary under terms and conditions which are indicative of employment, PAYE and NIC apply to payments received from that contract. Determining employment status is a complex area with slightly different rules for tax, national insurance and employment rights.
What is changing?
From 6 April 2020, the responsibility for deciding whether these rules apply shifts from the worker’s business to the end user. This is subject to exemptions for certain small businesses. The responsibility for accounting for tax and national insurance also transfers from the worker’s intermediary to the “fee-payer”. If the correct procedures are not followed, the liability for any underpaid tax and national insurance plus interest and penalties can transfer up the supply chain.
In practice, this means that there will be only a marginal impact on worker’s businesses that are currently complying. However, for those that are not, there will be a significant impact on net pay. Who bears the additional costs will depend upon supply and demand.
Who is affected?
- All medium and large businesses who use contractors, sub-contractors, freelancers, employment business or labour agencies
- Any employment businesses or labour agencies who supply workers engaged through limited companies to clients:
- (who are medium or large businesses in the private sector or in the Public Sector).
- Any workers who provide their services to medium and large businesses.
- Any advisers who work with any of the above businesses.
This legislation has been operating in the Public Sector since 2017 and many organisations have incurred significant liabilities because they were not ready to act from day 1.
Sue Ollerenshaw, Director of Efficient Tax Employment Solutions Limited will provide guidance on the new draft legislation and how to prepare for it, in addition to guidance on HMRC and National Minimum Wage audits.
Paul Chamberlain, Head of Employment at JMW Solicitors LLP will give an update on recent changes in recruitment and employment law.
1.00pm - Registration with tea and coffee
1.45pm - Seminar starts
2.30pm - Coffee break
4.00pm - Seminar finshes