Will IR35 kill your business? Are you ready to tackle the beast?

The new rules will change the way Construction Industry operates.

The industry has been relying on sub-contracting for years, and now it is time to review the Contracts and decide how the worker will be taxed – a deemed employee or maybe under #CIS?

The main change is the shift in the decision-making process and responsibility put on the Client rather than the Contractor, who decided on how he wanted to be paid.

We may ask: What is the whole fuss about IR35 if the rules have been there for years?

The main PAIN lies in how the Contractor will be taxed and the Client’s responsibility to decide upon it. Also, the Medium and Large size Companies must adjust the whole payroll system and pay extra tax and National Insurance for the Contractor.

The good news is – there will be no double taxation, as the Personal Service Company can account for these wages as non-taxable and non-NICable payments.
These payments should then be reported through RTI. If the payment is treated as a dividend, there will be Corporation Tax Relief plus no need to include those dividends in the contractor’s self-assessment as they are TAX-FREE.