Since 6 April 2021 large and medium-sized organisations have had to determine whether or not a worker supplying their services via their own personal service company would be treated as an employee if directly engaged.

HMRC presses on with IR35 in the private sector

 

CEST results will be accepted by HMRC

HMRC suggest organisations use their Check Employment Status for Tax (CEST) tool on their website to check the worker’s status, although that is not obligatory.

HMRC have recently confirmed that they will be bound by the CEST results, provided the information is accurate and it is used in accordance with their guidance. However, they will not stand by results achieved through contrived arrangements that have been deliberately created or designed to get a particular outcome.

Beware mini-umbrella company fraud

 

IR35 extended to private sector

Off payroll working rules have applied to the public sector since 2017, and was recently extended to the private sector in April 2021. If you use contractors working through their own limited companies within your business and are yet to implement the new rules, visit the government’s website to find out what you need to do.

 

If you’d like some impartial, expert advice about off-payroll working and how to deem whether your workers are self employed or not for the purposes of IR35, get in touch.

 

Related services:

IR35

Corporate tax services

Personal tax services