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Are you Aware of the Challenges IR35 May Create for your Business?

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If you are not sure whether anticipated changes and amendments to IR35 will affect your business or if you need a seamless practical solution to the burden and risk of IR35 then please read on.

Initially an obligation for the public sector, IR35 amendments, now on the horizon for the private sector, are likely to impact businesses engaging individuals via a Personal Service Company (PSC). This comes with its own complexities, uncertainties and risks of misinterpreting legislation, case law and HMRC guidance and has the potential to become one of the most significant challenges faced by UK employers in recent years.

As a business, you need to accurately assess the status of your workforce and contractors for tax purposes and, where necessary, comply with the relevant PAYE obligations.  Correctly determining an individual’s status for tax purposes is often not straightforward and requires time and effort, creating an extra burden for busy business owners who invariably do not have the level of employment tax expertise to address the issue effectively.

Grant Thornton Cardiff office is encouraging Welsh businesses to take advantage of its South region specialism as their clients are in the fortunate position of benefiting from one seamless solution.

This added value offering, which combines the advice, support and guidance of leading employment tax specialists with their premium outsourced payroll service providing a means to take the entire burden and importantly, the risk, off their hands. Furthermore, this powerful combination provides peace of mind for business owners and finance directors knowing the status of their contractors is accurately assessed for tax purposes and, where necessary, they comply with the relevant PAYE obligations by way of a separate contractor payroll, which Grant Thornton operate on their behalf as agents.

Along with the difficulties regarding the expected changes to IR35 obligations now under consultation, current challenges also include: recent employment case law in the ’Gig Economy’ regarding ‘worker’ status, specific employment agency rules and, following the Taylor Review, a number of additional consultations are currently underway regarding employment status, workers’ rights and the enforcement of these.

For more information on the ways in which Grant Thornton’s Employer Solutions Team can help, including training for key stakeholders, workforce reviews, and reviewing your business needs for an outsourced status/IR35 and payroll service please click here.