What is IR35 and how does that affect contractors & employers? скачать в хорошем качестве

What is IR35 and how does that affect contractors & employers?

JOD: So IR35 has recently been implemented. Could you give me a brief overview of what exactly it is and how it’s affecting both contractors and employers? What is IR35 and how does that affect contractors and employers? DOR: IR35 has been causing some waves and especially in the UK. It’s complex, it’s ambiguous but in simple terms, it’s anti-avoidance legislation. What it does is look at what the relationship is between the individual and the company. Is that an employee / employer or is it individual contractor /client. It looks at that relationship and wants to tax that individual based on that relationship. If they’re an employee, payroll taxes get applied to the contract income. If they’re an independent contractor, well then, the individual can pay expense, can pay dividends out on that so it really looks at that relationship. That’s the key to it. And it taxes that person accordingly. JOD: Ok, perfect. So it’s definitely something that people need to be mindful of at this point. DOR: Especially for clients. From the 6th April, there were some changes to the rules. The responsibility for deciding if the individual is an employee or a contractor passes to the client so for the client or recruitment businesses, they really need to make sure that if they’re taking on a contractor and they’re using their UK personal service company, that they have to asses at the start, if this individual is really a contractor or an employee. And it’s only for contractors using their UK limited companies. If it’s an Irish individual and an Irish company, then it doesn’t apply. JOD: Great, thanks so much for that.