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 2021 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 hirer is required to pay the employer costs as an addition to the contract payment made to limited company contractors, so contract values may be reduced.
Contractors and hirers need payroll specialists with expertise in the application of these legislations, or a specialist umbrella company when it is no longer viable to provide labour or services through a one man limited company. CWC Solutions has proven expertise and a range of services to manage the transition to a new way of contracting.
Contact CWC Solutions
Looking for an umbrella company to manage employment income under PAYE? Or a fast and efficient outsourced payroll service? Do you need assistance with employment status enquiries, tax investigations or other HMRC correspondence?
How can we help you? Simply let us know what you are looking for…