Contractors, brace yourself for April 2017 changes

Contractors, brace yourself for April 2017 changes

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Posted ByTeam Bradleys
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The fact that from April 2017 the proposed new legislation will move the responsibility to determine a public sector limited company contractor’s IR35 status from the contractor himself to the recruitment agency/end client is now more or less a “done deal”.

What irks the most is that the agencies and public sector bodies will surely apply a risk-adverse approach to steer clear of any troubles that HMRC might cause them. This means there is a high chance of them identifying a mass of contractors to be inside IR35 – a problem for the contractors.

You must be aware of the fact that if a contract falls inside IR35, a deemed salary calculation should be run to declare PAYE and National Insurance (NI) on 95% of the contractor company’s income, just allowing up to 5% to cover the costs of running the limited company.

Since HMRC appears not ready to rethink its approach on the changes proposed from April 2017, it is best for contractors to get clarity on their current IR35 status as soon as possible!  This is to ensure that when and if HMRC narrows them down for investigation, the contractors not only have their documents in place but also are prepared with their argument.

Since in checking the IR35 status, both the contract and working practices must be reviewed which is why it is necessary for the contractors to seek expert advice. Thankfully, at Bradleys Contractors, we offer a fully compliant IR35 review service to all of our Limited Company clients.

So please don’t hesitate to give us a call on our Tax Helpline number 020 3507 0022 or write to us at contact@bradleyscontractors.co.uk