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?
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.