Off-payroll working legislation will be rolled out to the private sector on the 6th of April 2021, when you will take the HMRC financial risk for ensuring your limited company contractors have the correct IR35 employment status.
what is off-payroll working?
The term Off-payroll working applies to workers that are operating via their own personal service companies while providing services to their clients.
Currently it is the responsibility of the worker to determine their own employment status by assessing their contract and working practices against what is known as the IR35 intermediaries legislation. An ‘outside IR35’ decision means the contractor pays significantly less tax. HMRC believe the workers often do not do the assessments correctly. HMRC think that nine out of ten times, the ‘outside IR35’ decisions are incorrect.
To avoid this, the government is shifting the responsibility to the hirers. This means that the hirers will be responsible for determining their employment status. This shift of responsibility also shifts the risk to you as hirers. If you somehow get the assessments wrong or decide to go for blanket assessments, you may be held accountable for the amount owed by these personal service companies. Therefore, reasonable care should be given while carrying out assessments to make sure that the results are 100% accurate.
After April 2021 you may insist that your workers are engaged under a PAYE solution.
Our award-winning giant umbrella is simple to use, compliant, paperless, mobile 1st and easy to join online. With umbrella premium, your workers can also benefit from a variety of pension options, private medical insurance and faster responses within 4 working hours.
As an alternative to an umbrella solution we have giant PEO. Offering the same benefits as giant umbrella but more straightforward because your workers are quoted their actual pay rate.
IR35 fee payer
A fee-payer is required where a contractor still wants to provide their services via their limited company, whether inside or outside IR35. A fee-payer is the party in the supply chain that pays the contactor’s limited company. It can be you the hirer, a recruitment agency or an intermediary.
With giant as the fee payer, not only are we responsible for the financial risk associated with IR35, but we are the first line of support to your workers throughout their contract with giant.