Who is the Fee Payer or Deemed Employer? If you are inside IR35, your ‘fee payer’ is the party above your Limited Company (PSC) who is responsible for deducting national insurance and tax before paying you net earnings.
What am I (the Contractor) Responsible For? From April 2021, it is the end hirers responsibility to assess IR35 status on behalf of you, the contractor. So even if you are a director of your own limited company, you no longer have that responsibility moving forward.
How do Brookson Support Contractors with IR35? If you strongly disagree with your end hirers assessment of your IR35 status, one of our Business Advisory Team will request an IR35 review from the Brookson Legal team to help you challenge the decision.
What is CEST? CEST is an online tool HMRC have created to help companies establish whether or not a particular contract falls within IR35.
What is Reasonable Care and how does it Impact my Assessment? IR35 legislation states that an end hirer must take ‘reasonable care’ in assessing all contracts, to establish whether the individual would be seen an employee when carrying out the necessary work. If they fail to take reasonable care, the end hirer will be responsible for calculating the deemed direct payment, paying it over and reporting the tax and NICs that result.
Is an Umbrella Company the only Option if i’m Captured by IR35? No. If you are captured by IR35 there are number of options available to you, including working through your company or going on the payroll of the agency or the end hirer. You need to consider which of the options available best suits your circumstances.
Does my IR35 Status Affect my Pension Contributions? If you are IR35 captured then you can continue to make pension contributions. However, the rules are different depending on...
Can I Avoid IR35? From April 2021, if you are providing services through a Limited Company, you can’t avoid your end hirer assessing your IR35 status and providing you with a status determination statement.
What is an IR35 Status and How is it Assessed? A contractor’s IR35 status effectively determines their tax position with HMRC. It is assessed by the hirer completing an SDS on the contractor’s behalf.
Does IR35 apply if I am working overseas or my client is overseas? If your client is based overseas with no presence in the UK, then the IR35 rules don’t apply. If they are based overseas but do have a connection to the UK, then they have to assess your IR35 status.