Anita Jagar’s Post

𝗠𝘆𝘁𝗵-𝗕𝘂𝘀𝘁𝗶𝗻𝗴 𝗜𝗥𝟯𝟱: 𝗖𝗹𝗲𝗮𝗿𝗶𝗻𝗴 𝗨𝗽 𝗖𝗼𝗺𝗺𝗼𝗻 𝗠𝗶𝘀𝗰𝗼𝗻𝗰𝗲𝗽𝘁𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝗖𝗹𝗶𝗲𝗻𝘁𝘀 🔍 IR35 can be a tricky area to navigate, with many myths and misconceptions floating around. Let’s clear up some common misunderstandings to help you manage your IT contracts effectively and stay compliant: 𝗠𝘆𝘁𝗵 𝟭: 𝗜𝗥𝟯𝟱 𝗢𝗻𝗹𝘆 𝗔𝗳𝗳𝗲𝗰𝘁𝘀 𝗖𝗼𝗻𝘁𝗿𝗮𝗰𝘁𝗼𝗿𝘀 Reality: While IR35 directly impacts contractors, clients are also responsible for correctly determining the contractor’s status. Misclassification can lead to financial penalties for your business. 𝗠𝘆𝘁𝗵 𝟮: 𝗨𝘀𝗶𝗻𝗴 𝗮 𝗖𝗘𝗦𝗧 𝗧𝗼𝗼𝗹 𝗚𝘂𝗮𝗿𝗮𝗻𝘁𝗲𝗲𝘀 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 Reality: The CEST tool is a helpful guide, but its results aren’t legally binding. It's essential to seek additional professional advice to ensure accurate assessments. We can help you with this. 𝗠𝘆𝘁𝗵 𝟯: 𝗖𝗼𝗻𝘁𝗿𝗮𝗰𝘁𝗼𝗿𝘀 𝗜𝗻𝘀𝗶𝗱𝗲 𝗜𝗥𝟯𝟱 𝗔𝗿𝗲 𝘁𝗵𝗲 𝗦𝗮𝗺𝗲 𝗮𝘀 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲𝘀 Reality: Even if a contractor falls inside IR35, they are not employees. They don’t receive the same benefits and protections as full-time employees but are subject to similar tax treatments. 𝗠𝘆𝘁𝗵 𝟰: 𝗜𝗥𝟯𝟱 𝗗𝗼𝗲𝘀𝗻’𝘁 𝗔𝗽𝗽𝗹𝘆 𝘁𝗼 𝗦𝗺𝗮𝗹𝗹 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀 Reality: The private sector reform in April 2021 introduced an exemption for small businesses, but medium and large businesses still need to comply. Understanding your business’s classification is crucial. 𝗠𝘆𝘁𝗵 𝟱: 𝗜𝗥𝟯𝟱 𝗦𝘁𝗮𝘁𝘂𝘀 𝗶𝘀 𝗙𝗶𝘅𝗲𝗱 Reality: A contractor’s IR35 status can change based on the specifics of each contract and working arrangement. Regular reviews and assessments are necessary to stay compliant. 𝗠𝘆𝘁𝗵 𝟲: 𝗢𝗻𝗹𝘆 𝗖𝗼𝗻𝘁𝗿𝗮𝗰𝘁𝗼𝗿𝘀 𝗡𝗲𝗲𝗱 𝘁𝗼 𝗪𝗼𝗿𝗿𝘆 𝗔𝗯𝗼𝘂𝘁 𝗜𝗥𝟯𝟱 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗴𝗮𝘁𝗶𝗼𝗻𝘀 Reality: HMRC can investigate both the contractor and the client. Ensuring compliance from the start protects both parties from potential scrutiny and penalties. Understanding these myths and the realities of IR35 helps in creating a compliant and fair working environment for all parties involved. If you need any guidance or have questions about IR35, feel free to reach out. We’re here to support you through the complexities. #IR35 #Compliance #ITContracts #ITRecruitment

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