IR35 Compliance for Hirers

IR35 is tax legislation that was introduced in 2000. It was introduced to ensure that self-employed contractors, operating through a limited company, also known as a Personal Service Company (“PSC”), pay the correct Income Tax and National Insurance. IR35 places an obligation on the worker (in the Private Sector, and via a PSC) to determine whether they are genuinely self-employed or more like a “disguised employee” (in the words of HMRC) and pay the correct taxes.

The obligation to determine tax status, and the associated tax risk, changed in April 2017 in the Public Sector, with the obligation and risk moving to the hirer and fee payer. Similar changes will take effect in the Private Sector from April 2020. The Government will require hirers to take “reasonable care” when assessing roles. Many hirers will not have the required expertise to apply the IR35 legislation and to meet this test. Therefore, hirers must find the right partner to help them comply with their new obligations.

Brookson Legal are a team of knowledgeable and experienced lawyers who specialise in IR35 and helping hirers of flexible workers comply with the law.
Get In Touch


Business Solutions for Hirers

Our unique combination of experience, expertise and credibility means that we are the obvious choice for hirers who want to assess their existing flexible workforce and get ready for April 2020, when changes in the Private Sector come into effect.

EDUCATE

We are working with hirers to explain the new rules to their key stakeholders, so that they know and understand the challenge they have ahead of April 2020 and, where necessary, begin to change the way in which they work with contractors.

AUDIT

Most hirers do not have a good understanding of the employment status of their current flexible workforce.  Brookson Legal clients are undergoing contractor workforce audits, through which we advise which roles are clearly inside or outside of IR35 and where the client might consider changes to working practices.

THE NEW “BUSINESS AS USUAL”

We take the output from our contractor workforce audit to work with our hirer clients on putting in place policies, processes and structures, so that hirers and their agencies can work together compliantly and with the least impact upon resourcing and cost.

ONGOING SUPPORT

Brookson Legal clients benefit from an IR35 helpline, manned by IR35 experts, with queries from hirers, agencies and contractors answered quickly and constructively.  We also periodically audit our hirer clients, so that our clients are in a position to demonstrate to HMRC that they have applied the new rules with “reasonable care” as required by the law.