Would it be easier if my business put all contractors inside IR35?
Up until 2017 in the public sector and April 2021 in the private sector the responsibility for determining the IR35 status and any tax liability lied with the PSC (contractor). From April 2021, in the private sector, Status Determination will be the responsibility of the End Hirer and tax responsibility will be with the Fee Payer.
How much could I be liable for if my business isn’t compliant?
If your business is successfully pursued by HMRC as to have not acted compliantly, you could liable for all deemed unpaid taxes of the contractor on that assignment.
On the flip side, if you’re considering taking a blanket approach and putting everyone inside IR35 without carrying out the necessary Status Determinations, this is not advisable. The law states your business must carry out Status Determinations for each individual assignment and this may also lead to future collective legal action from disgruntled contractors who feel they have paid the incorrect type of tax as a result of an incompliant blanket approach.
The important thing is to follow HMRC guidelines, carry out thorough and individual SDS’ and reach the correct determinations for your contractors in your organisation.
Insuring your business against IR35 tax liability
Corecom’s IR35 Protect is a fully insured, client facing, online platform for Status Determinations protecting all parties in the supply chain. The solution meets all your End-Hirer HMRC obligations by allowing Corecom clients to login and use the platform for free, produce SDS’ for your contract assignments as well as unlimited role-based assessments, and will never provide you with an “unable to make a determination” outcome. Most importantly, the product, underwritten by Zurich Insurance, covers whoever HMRC deem liable in an IR35 investigation, whether that’s you as the End-Hirer, the Fee-Payer or the Contractor, offering peace of mind throughout the supply chain.
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Don’t just take our word for it – book a demo today to discuss your specific requirements. We’ll show you how easy it is to use our online platform for your Status Determination Statements.
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What I wanted from this partnership was to be able to take a step back and free me up to focus on my other responsibilities in addition to recruitment. Working with Corecom alone made everything so straight forward. I wasn’t having to chase up several agencies and there was no duplication of candidates. Tunstall was their no1 focus and I trusted them to deliver, which they did. There was noticeable improvements in CV-to-interview and interview-to-placement ratios which was a real pain point before changing the model on how we worked together. Working on a retained basis gave me confidence that extra effort and resource would be put in to filling the roles.
