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Informing your IR35 (off payroll) approach

How will IR35 legislation changes impact you?

From April 2021, medium and large-sized private sector businesses will be responsible for determining the employment status of a contractor’s assignment, deducting any employment taxes due and paying any tax owed to HMRC.

What does it meant to be Inside or Outside IR35?

Inside IR35

Outside IR35

To be ‘inside IR35’ means the worker is to be considered, for tax purposes, an employee of the end client and therefore subject to PAYE. ​

​To be ‘outside IR35’ means that the worker is operating as a genuine business, and therefore operating outside of the IR35 rules.

Get your role determined

First things first, you must confirm the IR35 status of an assignment by providing a ‘Status Determination Statement’ (SDS).

There are a number of online tools available to help you determine the status, such as HMRC's CEST (Check Employment Status for Tax), which presents a series of questions to help determine employment status (find out more here) However, it's been widely agreed that the determination can be challenged.

Therefore, Cognitive have taken the decision to offer an IR35 insurance-backed route. As part of this, we will cover the cost for status determinations and role assessments. Plus, it only takes 1 day to get a determination.

Book a call to speak to one of our specialists to understand the best route for your business.

Contact usFind out more

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Optimise your hiring strategy

Informing business decision

What's the best option for you?

Cognitive offer a comprehensive list of hiring options to ensure both our clients and contractors can continue to work successfully in a manner that suits them, whether the assignment is deemed inside or outside IR35.

Outside Engagements:
  1. We provide options to engage contractors via outcome-based contracts (Statement of Work). Find out more.

  2. We also offer an insurance-backed solution for each specific contract, indemnifying all parties from IR35 risk. Find out more.

Inside Engagements:

An Umbrella contracting route may be your best option; we can recommend a number of compliant organisations. Find out more.

Book a consultation today to discuss the best hiring option for your business.
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