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IR35: The Basics and the Chase & Holland Pledge

IR35: The Basics and the Chase & Holland Pledge

On April 6th our industry will see one of the biggest commercial changes in the way temporary staff are paid with the introduction of IR35. For a lot of people this really represents a big upheaval, but at Chase & Holland we see this as an opportunity to introduce best practices that have been long neglected.

Firstly, IR35 only affects those who are one of the following:

  • A worker who provides their services through their intermediary
  • A client who receives services from a worker through their intermediary
  • An agency providing workers services through their intermediary

The rules apply to all public sector clients and private sector companies that meet 2 or more of the following conditions:

  • Have an annual turnover of more than £10.2 million
  • Have a balance sheet total of more than £5.1 million
  • Have more than 50 employees

What you need to do:

You will need to decide the employment status of a worker and must do this for every contract you agree with an agency or worker. You will need to:

  • Pass your determination and the reasons for the determination to the worker and the person or organisation you contract with;
  • Make sure you keep detailed records of your employment status determinations including the reasons for the determination and fees paid; and
  • Have processes in place to deal with any disagreements that arise from your determination.

These rules will not change things for those contractors genuinely providing services to multiple clients, but will close the loophole which HMRC has seen as a tax avoidance scheme for many. At Chase & Holland we pride ourselves in providing 97% of our temporary/contract workers on a PAYE basis.

Chase & Holland pledge to continue to focus on providing a quality PAYE temporary and contractor service to our clients. Although we are equipped to operate under the new rules of IR35, it will continue to be our preference to focus on PAYE contractors and temporary workers unless there is a robust case for the candidate/assignment to be off payroll.

If you want any further assistance or advice on the implementation of IR35 in your business, please do not hesitate to contact Chase & Holland and we will be happy to assist.