As you must be aware, the IR35 rules will apply April 6 onwards. The payments that are made before April 6 will not be affected by the revised IR35 / off-payroll legislation. However, the new payment norms based on the IR35 status of the assignment will kick in for any payments that you make on or after April 6 and you will have to deduct the PAYE and NICs for employees that fall within IR35.
Needless to say, the contractors wouldn’t be too pleased if there are deductions in the payments for the work that they have done before April 6. In order to avoid any losses to your contractors and to avoid any confusion, recruitment agencies must complete the payments for all such assignments before April 6. For this, it is essential to have a plan in place for ensuring that there are no pending timesheets or unresolved queries on April 6.
So, do you have a plan in place to clear all the payments to contractors on time?
Our IR35 experts would be happy to talk to you on a call or visit your office for a chat over a cup of coffee. For any queries regarding IR35, please feel free to contact:
Pom Chakravarti: Call 07870 678 557 or email firstname.lastname@example.org.
Kunal Shah: Call 0758 4651087 or email email@example.com.
Other important IR35 related questions recruitment agencies must ask:
- IR35 reforms: How will the Apprenticeship Levy impact your recruitment agency?
- Are your clients and contractors aware of all the changes that are happening?
- How many public sector agency workers will be lost as a result of falling within IR35?
- Have you familiarised yourself with the ESS (Employment Status Service) tool?
- Will contractors ask for higher pay rates to offset the Employer’s NI?