The off-payroll working rules (more commonly known as IR35) is intended to make sure that individuals working like employees but who instead work through an intermediary (such as a limited company) pay the same income tax and National Insurance Contributions as an employee.
In the private sector it has historically been the contractor who has been responsible for making an IR35 status determination (i.e. identifying if an individual is working like an employee). This is changing in April 2021 so that the end client in the private sector will be responsible for making a status determination which will identify if employment taxes are applicable.
Determining IR35 status can be complex and UK courts are frequently divided when making a final judgment.
How can TCP help?
TCP has entered into a partnership with Kingsbridge to provide a bespoke IR35 solution (which includes a digital tool) to our clients and our agency partners’ clients.
Given the impact of COVID-19 and anticipated impact of Brexit, TCP understand that end clients have much broader strategic concerns than IR35. Our solution will give end clients the tools needed to address IR35 exposure in an accessible and straightforward way, allowing clients to continue to focus on their own business needs.
Clients (and our partner agencies’ clients) by virtue of using TCP’s services will now receive:
- Dedicated training sessions and company logins for the Kingsbridge IR35 tool
- Individual and role based IR35 status assessments
- A status determination statement
- An automatic expert (manual) review of borderline results
- Integrated status disagreement process
- Unlimited access to Kingbridge’s IR35 helpline
- Downloadable reports and recommendations
- Audit log for record keeping
- Regular IR35 related events and webinars
It is also possible for end clients to purchase IR35 insurance directly from Kingsbridge to protect their IR35 exposure.
This solution will mean that end clients can mitigate their IR35 exposure in a number of ways:
- Clients can receive an expert review of IR35 status, complete with unlimited support
- Clients can attract contractors to the business by demonstrating a robust but fair IR35 status determination process. This will mitigate disruption to your projects
- Clients can mitigate exposure to IR35 liability with an automated status determination statement platform alongside a status disagreement process tracker
- Clients can make a separate and independent decision to purchase IR35 insurance through Kingsbridge (or any other insurance provider) which can help manage the risk of HMRC exposure
Who are Kingsbridge?
Kingsbridge are an experienced contractor insurance broker. Kingsbridge are able to offer competitive insurances for both contractors and end clients in the supply chain – notably for business insurance (employer’s liability and professional indemnity etc.) as well as an IR35 insurance cover.
Business Insurance for your limited company
- If you do not have the insurances stipulated in your contract already, (notably, professional indemnity, public liability and employers liability etc.), you can obtain cover with Kingsbridge. There is no obligation to use Kingsbridge’s services but you can get a quotation which includes a 10% discount off their professional indemnity package. You can get in touch by calling 01242 808 740 or by going online at https://TCP.kingsbridge.co.uk/buy
- As the reform to the off payroll working rules in the private sector is delayed until 6th April 2021, it’s important to remember that under the existing rules the contractor is legally responsible for making the determination of IR35 status. If IR35 isn’t dealt with properly it can lead to costly and lengthy cases, and possibly a monetary demand made from HMRC, so tax liability and investigation insurance is also important to consider. To obtain a quotation for IR35 Insurance, please contact Joey Smith from Kingsbridge on 01242 809 310
If you would like to find out more about IR35 and how the new rules may affect you, take a look at our latest blog posts – IR35 – How businesses can prepare and Impact of IR35 on Contractors.