IR35 Guidance & Advice
How Talentpace can help you with IR35
We have fully compliant options for any existing contractors you have with us. These are via:
Audited umbrella partnerships
Our own PAYE
Payment of limited companies
We can also correctly process any of your other contractors (that are currently direct or through other sources) through the above methods. This means you:
Have peace of mind that the tax treatment properly reflects the SDS (see below)
Avoid paying the contractor directly
Keep the individual off your payroll and further away from your own employee status
Keep headcount down
Keep flexibility of workforce
We have partnered with a tax specialist who can:
Advise on unclear determinations
Provide insurance to back up contracts and cover the cost of legal defence
Provide insurance to cover tax liability in the event that HMRC challenges an SDS
For more information on how we can help you with IR35 compliance for new or existing contractors you can contact Vimal Navsaria at firstname.lastname@example.org
Our Guide to IR35
Who is responsible?
HMRC has deemed that the end client (the business who the services are delivered to) is responsible for determining whether a contractor role sits inside or outside IR35 and therefore needs to make a Status Determination Statement (SDS) for every contract role/service.
What does Inside or Outside IR35 mean?
Inside IR35 means the contractor is effectively an employee and therefore Income tax and National Insurance needs to be deducted at source (by whoever pays the contractor). There is also the additional cost of Employers National Insurance. Outside IR35 means the contractor is providing a service outside of an employee relationship. The Contractor remains responsible for their own Income Tax and National Insurance liability and can provide these services through their own limited company.
Who does it apply to?
The reform applies to all medium and large companies. Small companies are exempt.
What constitutes a “Small Company”?
To be deemed a small company, businesses (including any subsidiaries and/or parent companies) must qualify for 2 of the following 3 criteria:
Annual Turnover no more than £10.2m
Balance Sheet total no more than £5.1m
Less than 50 employees