Are you ready for IR35?
In April 2017, the Government introduced the IR35 Off-Payroll Working Rules to the Public Sector which affected all contractors who provided their services through a Personal Service Company (limited company).
In April this year, these rules will be extended to the contractors working in the Private Sector – you could be affected by these changes unless you are working for a client that falls under the Small Business Exemption.
What does the change in legislation mean for you?
For any client who is not classed as a small business, they will need to provide an IR35 Assessment on the work that you are doing, known as a Status Determination Statement (SDS). This SDS will be passed through to Hallam Medical and on to you, allowing you to see first-hand what the client has decided.
If the client decides the assignment is outside of IR35, then nothing changes for you, you can continue to work through your limited company and be responsible for your own employment taxes.
However, if you accept an assignment that the client deems inside IR35, then the payments you receive will already have all employment taxes deducted by the person that pays you, either Hallam Medical or your chosen umbrella company.
Have you decided how you will want to be paid if the assignment you accept falls inside IR35?
The decision as to whether the assignment is deemed inside or outside IR35 is made by the end client, Hallam Medical doesn’t make this decision, we pass on the decision to you.
If an assignment is deemed by the client to fall inside IR35 then you have two options of how you receive payment.
You can choose either:
- Hallam Medical PAYE
- Umbrella Company PAYE
If you choose Umbrella Company PAYE, you will need to select an umbrella company that provides you with Medical Malpractice insurance, as the cover provided by professional bodies such as the RCN is not valid if you work with an Umbrella Company.
What if I don’t agree with the client’s status decision?
If you disagree with the decision you have the right to log a disagreement with the client for review, stating your reasons why you believe the decision is incorrect. In all instances such as this, Hallam Medical will liaise with the end client on your behalf.
Don’t forget we are always here to help you so if you have any questions about IR35 or wish to know more about how this may affect you call our dedicated IR35 team today: