Are you a contractor providing services to a private sector organisation via your own limited company, or a medium to large sized private organisation who engages contractors providing services via their own company?
If so, the latest government announcement around expanding the public sector off-payroll working rules to the private sector is something that will affect you or your organisation.
Whilst the autumn budget announcement that the changes will not be introduced in to the private sector until April 2020 may have led to a collective sigh of relief from those affected, businesses are being urged to make use of this extra time and to start considering how the changes may impact them.
For medium to large sized private organisations, the complexity of having to determine the IR35 status of all of their PSC contractors, along with the significant administration burden and payroll responsibilities this will bring, is a daunting prospect. Contractors will also need to consider how this will affect their pay, whilst being wary not to be enticed by any tax avoidance schemes that came to the fore following the changes in the public sector in April 2017.
For those who are uncertain on how they will tackle the above problems, or who wish to avoid having to take them on at all, an Umbrella company can provide a compliant hassle free option. Engaging through an umbrella company can benefit both contractors and businesses by:
- Providing full employment benefits to contractors, with the flexibility to work on various temporary assignments
- Removing the burden of IR35 status decisions from businesses, whilst eliminating any risk or liability that may arise from incorrect decisions
- Reducing the administration and training costs associated with legislative change
- Giving both businesses and contractors the peace of mind that the correct tax and national insurance deductions are being taken and paid to HMRC on all payments
- Ensuring further compliance with all other UK tax and employment legislation, including the Agency Worker Regulations (AWR)
If you would like to know more about Bishopsgate Contracting Solutions’ umbrella service, or wish to discuss any of the above with us, please give us a call today on 0203 019 4990.