Recently, HM Revenue and Customs won a high-profile £140,000 IR35 tax case at the Court of Appeal. Today at Stonebridge we’re discussing the importance of the “off-payroll working rules” and why we must comply with the legislation. The purpose of IR35 is to prevent contractors, from trading via their own limited company in order to pay less tax and national insurance contributions than if they were employed directly by their end client. When evaluating a contract, a “Status Determination” should be completed to determine if a contractor will fall inside or outside of IR35 legislation. Each contract and engagement must be reviewed individually. It is vitally important that all contractors and businesses ensure they are compliant with IR35 legislation. Falling on the wrong side of IR35 means end clients could be heavily penalised financially. For more information about what this could mean for your business, please contact compliance@sbcontracting.co.uk where we will be happy to assist.
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