IR35 Issues in the public sector – coming to a private sector near you soon…
IR35 is the much vaunted “disguised employment” legislation that is supposed to combat people working as a contractor in roles which under normal circumstances would be held by a permanent employee.
A laudable goal it may be but the reality of the situation is that as the onus has passed to the client to determine whether a role (rather than an individual) is “caught” by IR35, many public sector departments are issuing “blanket” determinations of status and declaring all contract roles are “within IR35”.
Not only is this against the rules (HMRC are very specific regarding the process stating that “all roles must be individually assessed”) but it is also potentially really detrimental to your business and to individual contractors engaged by you.
If a contractor is deemed “within IR35” then the amount of tax they have to pay will rise to that of an employee. This makes contracting much less viable and in many cases untenable.
Torsion can take that problem away from you. As part of our in-house recruitment service, we carry out all IR35 assessments and determine whether or not the role is inside IR35. If at a later date HMRC determine that we got the assessment wrong, Torsion will bear all of the tax, national insurance, penalties and interest charges without any cost or hassle to you.
IR35 needn’t be taxing – let Torsion take the strain for you, leaving you free to do what you do best – run your business.
Visit www.torsionconsulting.com for more information