TJW Specialist Payroll Solution Provider – Umbrella – CIS – LTD. Helping to keep your business compliant at all times !!

IR35 – what is it and what’s changing?

Currently, limited company directors decide for themselves whether or not they fall outside of these rules, but as of April 7th 2017, this decision will become the responsibility of the public sector body they are working for.

The knock on effect of this is likely to be that many more limited company workers in the public sector will be found to be within IR35 (in official terms caught by IR35), in fact some public sector bodies are making a blanket decision on all contractors being inside the rules and indeed on whether they are going to engage with personal limited companies at all after April. Affected workers may see a substantial decrease in their take home pay and may no longer feel that running a limited company is the right choice for them.

Umbrella already? Or thinking about it?

The main thing to remember is that IR35 is only relevant if you are working through a limited company; if you work through an umbrella company, you can forget all about it. This is because, as an umbrella company employee you are already being taxed under normal PAYE circumstances.

If you are not already contracting through an umbrella company but considering it in light of these changes, there are some great benefits. It’s a much simpler way of working. Submit your timesheet and any claimable expenses, (if applicable) and wait to get paid. All your tax and NI is deducted at source, so you don’t have to think about setting anything aside. Mileage only expenses will be applied if you are a mobile worker or proven to operate outside of SDC. ( supervision, direction & control).

Working via our umbrella model, you become a TJW employee. As standard you will also benefit from:

·        Full insurances

·        Workplace pension

·        Statutory sick pay

·        Statutory maternity and or paternity pay

·        Holiday pay

Talk through the options

TJW have been providing payroll solutions & supporting contractors for over 16 years. If you are operating as a limited company in the public sector, Our registrations team would be happy to discuss your individual situation and help you decide on the best way forward.