private sector Articles

HMRC Launches Private Sector IR35 Consultation

marketing | 6 March 2019

IR35

HMRC has launched a fresh consultation on changes to off-payroll Intermediaries Legislation (IR35), due to take effect in the private sector from April 2020.

The changes would see reforms introduced in the public sector in 2017 extended to the private sector.

The change will affect contractors that operate through an intermediary like a limited company or personal service company (PSC).

Instead of judging their own IR35 status, the private sector organisation that engages the contract will make this decision. It could mean that more contractors are deemed ‘inside IR35’ and liable to pay income tax and National Insurance contributions.

Private Sector IR35 Reforms: What It Means for You

marketing | 30 October 2018

The Treasury released new guidance on off-payroll working (IR35) in the private sector yesterday, following the Chancellor’s Budget speech.

Following a consultation on the rules, some commentators expected IR35 reforms to take effect from next year. But the policy paper reveals that the changes will be introduced in April 2020, giving businesses more time to prepare for the reforms

We’ve combed through the policy document, picking out the key points so you can understand how the changes will affect you.

Private Sector IR35 Could Cost Contractors £14,000

marketing | 19 June 2018

As the government consults on plans to extend IR35 rules to the private sector, self-employment organisation IPSE claims that the changes could ‘strangle’ contractor living standards.

IPSE claims that the ‘inhibiting, anti-business’ policy could cost contractors an average of £14,000 per year in lost income.

Using average day rate (£430) and average weeks worked (42 weeks per year) figures from IPSE’s Freelancer Confidence Index, they calculate that a contractor’s take home pay will drop significantly.

Private sector IR35 consultation expected soon

marketing | 23 March 2018

Last week, the Government’s Spring Statement warned that a consultation on extending IR35 off-payroll working reforms to the private sector could be due soon.

Off-payroll working didn’t make it into the Chancellor’s speech, but buried in a supplementary document the government did make mention of the rule changes.

The document says that “in the coming months,” the Government will publish “a consultation on how to tackle non-compliance in the private sector, drawing on experience of the public-sector reform.”

Budget 2017, IR35, Private sector, Consultation,

IR35 private sector consultation: What you need to know

marketing | 24 November 2017

The Autumn Budget delivered this week by Chancellor Philip Hammond was better than contractors than many had expected.

But it did include details about a consultation to extend dreaded public sector IR35 compliance rules over to the private sector.

This is a notoriously tricky subject, so we have produced a brief guide will all the information you need to know.

What expenses can limited company contractors claim

marketing | 22 November 2018

If you contract through a limited company, there are certain expenses that you can claim against your income to reduce your tax liability.

If your limited company makes £50,000 and you claim back £10,000 in allowable expenses, the taxable profit will be £40,000.

There are some rules governing what expenses limited company contractors can claim.

Chancellor takes aim at private sector contractors

marketing | 15 October 2018

Media reports suggest that the Treasury is planning to overhaul IR35 tax rules with a costly policy for limited company contractors.

The move, which could be announced in this month’s Budget, would see public sector IR35 compliance rules extended to the private sector.

Just like public sector bodies, private firms would be responsible for ensuring that off-payroll personal service company contractors stick to the IR35 rules.

If a firm deems a contractor to be ‘inside-IR35’, the contractor would need to be placed onto the company’s payroll and would be liable to pay higher national insurance contributions.

Government seeks views on IR35 non-compliance in the private sector

marketing | 23 May 2018

The government wants to hear from you as part of an attempt to tackle IR35 non-compliance in the private sector.

It comes after changes to IR35 rules in the public sector caused problems public authorities and contractors

Also known as off-payroll working, IR35 rules are designed to stop employees working and paying taxes as if they were contractors.

The rules apply to contractors working through personal service companies who, if they were engaged directly by the company, would effectively be employees.

HMRC: IR35 Reforms Could Hit Private Sector

marketing | 12 February 2018

IR35

private sector

Contracotrs

Personal Service Company HMRC forum

Newly released HMRC forum discussion papers suggest that the IR35 reforms that have caused such a headache for contractors in the public sector could be introduced into the private sector as early as April 2019.

In a December meeting, HMRC acknowledged that public sector IR35 changes had fuelled some non-compliance but insisted that addressing ‘an immediate Exchequer risk’ was a main priority.

This indicates that the tax authority plans to speed up proposed changes and bring in more money by addressing IR35 non-compliance in the private sector.

Could treasury extend IR35 reforms to private sector?

marketing | 6 November 2017

Reforms to ‘disguised employment’ IR35 rules were introduced in the public sector this year. The new rules caused confusion amongst recruiters and lead to a take-home pay cut for many contractors.

Now the Treasury has dropped its strongest hint yet that similar reforms could be introduced in the private sector – with the potential to affect millions of contractors and freelancers.

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