Off-Payroll Working Rules
If it is determined that the Intermediaries’ Legislation, known as IR35, applies to any contract, then contractors are required to process a salary of around 75%-85% of company income, with the balance paying the employer NI contribution on the salary and allowable expenses.
Known as the Off-Payroll Working rules, from April 2020 and where contractors are working for medium to large business, it will be the hirers responsibility to process contract payments under PAYE if it is deemed that IR35 would apply to the contract. The difference is that the hirer pays the employer costs as an addition to the contract payment made to limited company contractors.
Contractors need accountants that specialise in the application of these two legislations, or a specialist umbrella company when it is no longer viable to provide labour or services thorugh their own limited company.
Contact CWC Solutions
Looking for an umbrella company to manage contract payments under PAYE? Do you need an accountant to assist with personal tax returns, setting up a limited company, accountancy and payroll services, managing IR35, registering for self-employment, dealing with employment status enquiries, tax investigations and effective handling of any other HMRC correspondence?
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