In this article, we look at how the off-payroll rules will affect you and your business.

Contractors and freelancers operate through a private company to enjoy a better tax treatment compared to sole traders — but a more favourable tax position is actually never guaranteed because of off-payroll working rules known as IR35. According to IR35, if a contractor or freelancer has a working relationship with a client that is more akin to regular employment, that worker has to pay income tax and National Insurance contributions on their income, rather than the more generous corporation tax. This is called ‘deemed employment’, and working out whether you or your contractor are deemed employees can be difficult. At first, the responsibility for determining employment status fell solely on the worker themselves. However, reforms in 2017 for the public sector and 2021 for the private sector shifted this burden to the client engaging a contractor’s services….

To read more, click this link for the full article: apu-sep23-IR35

Porter Garland is a five star chartered accountancy firm covering Surrey, Hampshire and Berkshire – we are based in Camberley and have clients across the three counties.

We’re waiting to hear from you. We can’t wait to be a part of your journey, so get in touch with us today, and let’s get to work.