IR35 private sector reforms: What IT contractors need to know
Computer Weekly asks contracting experts to answer questions about PSC bans, compliant umbrella companies and challenging status determinations, with the latest IR35 reforms coming into place
Share this item with your network: By Published: 25 Feb 2021 9:18
Preparations for the onset of the IR35 tax avoidance reforms in the private sector from 6
April 2021 are well under way, with many of the medium to large firms in-scope of the reworked rules already in the thick of working out their compliance strategies.
The reforms are set to usher in a sizeable change to where responsibility will fall within the extended end-client-to-contractor labour supply chain for determining how personal service company (PSC) contractors should be taxed from 6 April 2021.
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IR35 private sector reforms: HMRC reminds firms to use ‘reasonable care’ when applying new tax rules
As the countdown to the IR35 reforms being rolled out to the private sector continues apace, HM Revenue and Customs issues compliance guidance for firms in-scope of the new rules
Share this item with your network: By Published: 16 Feb 2021 9:40
HM Revenue and Customs (HMRC) has confirmed that ensuring private sector firms are taking “reasonable care” when determining how the contractors they engage with should be taxed will be part of its IR35 compliance activities post-April 2021.
The organisation has published a guidance document, designed for use by the medium to large private sector firms in scope of the IR35 reforms, to set out the approach it will take to ensure compliance with the changes once they come into effect on 6 April 2021.
IR35 private sector reforms: Zurich Insurance under fire over contractor blanket ban
Zurich Insurance is the latest high-profile financial services company to declare contractors can only continue to engage with it via umbrella setups from April 2021, ahead of the IR35 rules coming into force
Share this item with your network: By Published: 01 Feb 2021 11:05
Zurich Insurance’s decision to blanket-ban the use of limited company contractors in response to the incoming IR35 private sector reforms is raising eyebrows, given the firm’s willingness to insure off-payroll workers against IR35-related investigations by HM Revenue and Customs (HMRC).
Zurich is actively involved in underwriting insurance policies for a handful of contractor recruitment and insurance firms that provide off-payroll workers with financial protection against IR35-related tax investigations.
IR35 private sector reforms: IT contractors warned to be wary of non-compliant umbrella companies
The proliferation of websites offering comparison site-like services for umbrella companies has prompted tax experts to warn IT contractors of the financial risk posed by firms offering ‘too good to be true’ take-home pay rates
Share this item with your network: By Published: 21 Jan 2021 10:00
A surge in the number of umbrella company comparison sites offering “too good to be true” take-home pay rates has reignited concerns that the incoming IR35 private sector reforms could result in more IT contractors facing life-changing tax bills in years to come.
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HMRC data shows online IR35 status check tool does not return a result in nearly 20% of cases
Figures released by HMRC to show how many times its online IR35 tax status checker tool has been used reveal shortcomings in its ability to reach a conclusion in nearly 20% of cases
Share this item with your network: By Published: 11 Dec 2020 15:00
Renewed concerns about the effectiveness of HM Revenue & Customs’ (HMRC) much-maligned IR35 tax status checker tool have been raised following the disclosure that in nearly one in five uses it failed to provide a response.
According to data published by HMRC on 10 December 2020, the tool was used a total of 975,416 times during the 12 months to 24 November 2020 to determine the IR35 tax status of contractors, ahead of a reform of the tax avoidance regulations coming into force in the private sector in April 2021.