April is nearly upon us and that means one thing in the world of contracting – the new IR35 changes will come into force shortly. With it being at the top of end hirers agendas, the majority will have put processes in place and have been in touch with their contractors. If you’re a contractor who hasn’t yet received a Status Determination Statement (SDS) for a job you’re working on, it’s time to be proactive.
Enquire as to when you can expect your SDS
While the new rules mean the determination will lie with the end hirer, it will affect everyone in the supply chain. As a contractor, the decision to be inside or outside IR35 will impact on the amount of tax you pay. End clients who end up making a decision quickly may not take reasonable care, so be sure to ask what they’re doing to prepare for the new legislation.
Don’t be afraid to ask questions
If you haven’t received your SDS it’s ok to get in touch with your end hirer and ask for a timeframe. If you feel they don’t have a process in place or seem to be deferring away from the question, you can introduce your hirer to Brookson Legal. Brookson has an expert legal team who are on hand to support with workforce audits, meeting HMRC’s regulations and helping end hirers remain compliant both pre and post April 2021.
Be prepared to challenge your end hirer’s determination
There’s a chance that when you receive your SDS it will not be the outcome you expected. If this is the case, then you are within your rights to challenge the determination and provide additional evidence that could support a different determination. Your end hirer will then have 45 days to respond to your query. The sooner you get your SDS, the more time there will be to iron out such issues.
Gain understanding of the alternate operating models
It’s natural to feel that some of the control you had has been lost with determinations falling to end hirers, but it’s still worth educating yourself on all the operating models surrounding IR35. Understanding the tax obligations associated with working as a limited company or under an umbrella company, look into other options that may be of use.
Brookson’s Solution – Flex
You may not be aware but working contracts both inside and outside IR35 in the same tax year can cause significant consequences and the very real risk of an unexpected tax bill if you do not get the right advice.
We don’t want this to affect you. We want to help you take back control and be as tax efficient as possible by ensuring you are prepared, protected and working compliantly, no matter your current or future situation.
That’s why we built Flex. Flex is a unique service built to simplify very complicated legislation and help you manage the complexities of switching between Limited and Umbrella contracts.
If you have any further questions or need further support contact Brookson.