IR 35 Risks Explained Finance Professionals - UK's leading Healthcare Limited Company & Payroll solution

IR 35 Risks Explained

IR35

UK Inland Revenue legislation implemented in April 2000 to tackle tax and NIC avoidance schemes through intermediaries i.e. Partnerships or Personal Service Limited Companies.

The UK Inland Revenue now sees contractors or temporary workers as "disguised employees" or "tax avoiders" who should be included on the client payroll and have tax and NIC deducted each week/month.

Know your UK legislation !!!

IR35 is aimed at the situation where a worker is essentially seen as an employee, but they are providing their services through a Personal Service Limited Company thus avoiding the tax and legal consequences associated with being an employee.
The legislation calls for one to look at the contractors ‘arrangements’ with a client, and to decide whether those arrangements would equal employment were it not for the Partnership/Personal Service Limited Company.

Your Employment Status

Employment status is not statutorily defined and as a result you have to consider decisions made in UK court cases to help decide whether the conditions a person is working under are deemed to self-employment or company employment. Finance Professionals has done this already.

Who is affected by IR35?

• Essentially, IR35 affects all temporary or contract workers who do not meet the Inland Revenue’s definition of being ‘self employment’.

This means that contractor’s caught by IR35 pay significantly more tax, reducing their take home pay by up to 25%.

What does FINANCE PROFESSIONALS offer?

By joining FINANCE PROFESSIONALS, many Healthcare locum’s, temporary and contract workers continue enjoying the freedoms of IR35 compliant contracting.
Many have discovered FINANCE PROFESSIONALS professional, friendly service that saves you money and hassles.