As an agency operating within the private sector, how might you be affected by changes to the IR35 regime?
Agencies may in some circumstances be liable to operate PAYE on behalf of clients for contractors who have been classified by the client as self-employed.
Your business may also find itself caught in the middle between contractors who resist being reclassified and clients who wish to play safe and take a blanket approach.
Uncertainties are also likely to be exacerbated by the fact that the Government is still considering its responses to a recent consultation on the details of the new rules. Concern is growing that once the final details are published there will be little time for individuals and organisations to prepare. The industry is also concerned about the need for improvements to the existing online assessment tool, which many regard as not fit for purpose.
How can we help?
If you are concerned about the effects of the IR35 changes and what this may mean for your business, we can help you:
- understand the implications of the new rules;
- undertake an audit of the contractors and clients with whom you currently work to assess areas of risk;
- consider whether adjustments need to be made to your business model and documentation;
- advise who will be liable to make the payment of PAYE and NI in a given situation; and
- help you find creative but legally compliant solutions to the problems thrown up by the new rules.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.