‘Do you employ IT contractors to supplement your IT department. If you do, please read below, it might save you a lot of money.
New IR35 changes will be implemented in April 2020 for private sector contractors that will transfer responsibility from contractors to large and medium companies to assess IR35. The 2020 reform will bring the private sector IR35 in line with the public sector, where the reform was implemented in 2017. IR35 legislation ensures that UK contractors pay the same tax and National Insurance contributions as an equivalent employee would.
This means private sector employers hiring contractors will be responsible for determining their IR35 status. Businesses and contractors should start preparing for this change as soon as possible.
In fact, HMRC can go back at least six years to determine whether or not IR35 applies to any previous work you’ve carried out and can request you to pay any necessary additional penalties and interest.
Historically employing a contactor in IT has been a cost efficient way to increase your IT department without increasing your head count. This has lots of advantages, but has it always been cost effective? Although it is a known cost, do you really get value for money? Now the costs might become even higher.
If you want to find another way to support your already busy IT department, call Archie Gardner on 0845 1308499 / 07885104248 to discuss how IMS can support all your IT needs.’