Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
The IR35 reforms
will be implemented this April—do you feel prepared? Do you know how
to mitigate the risks if you’re a medium-sized or large-sized company hiring
contractors and freelancers? Do you know where you need to go to get the information
This article aims
to give you a quick overview of what's coming and how it will affect you.
You may also want to see our article covering the questions asked at our IR35 events, and the answers from our experts: IR35 reforms 2020: 16 questions asked at LexisNexis events and the answers from industry experts
The current IR35
legislation in the UK stipulates that contractors pay equal tax and National
Insurance contributions (NICs) to that of a regular employee.
The new IR35 rules will
be implemented in April 2020 for private sector contractors. The changes will mean
that medium and large companies will be liable for assessing a contractor’s employment
status relating to IR35—a responsibility which previously sat with the contractors themselves.
The 2020 reform
will bring those operating in the public sector in line with public sector
laws, where the reform was implemented in 2017.
published two draft Regulations that explain how it will recover unpaid income
tax and NICs from April 2020, when the new IR35 rules come into effect.
The new rules will make medium to large employers in the private
sector and who engage contractors via intermediaries (the clients), potentially
liable for income tax and NICs that should have been paid on the contractor’s
earnings by other parties who are further down in the supply chain.
The draft regulations confirm that HMRC will first seek to recover
any unpaid tax and NIC liabilities from the agency the client contracts with,
where this agency is UK-based (agency one in the labour supply chain). Where
HMRC are of the view that there is no realistic prospect of recovering the
outstanding Income Tax or NICs from agency one, HMRC will then seek to recover
unpaid liabilities from the client. HMRC will issue a recovery note to transfer
the debt and there will be a right to appeal.
HMRC have issued a technical note to accompany the draft
regulations. The note states that HMRC will not transfer the debt in the case
of ‘genuine business failure’ of the party ordinarily liable to pay income tax
and NICs, but it does not explain what constitutes a ‘genuine business
on the draft regulations closes on 19 February 2020.
(Radius Law: http://radiuslaw.co.uk/blog/2020/1/26/ir35-news)
Access this article and thousands of others like it free by subscribing to our blog.
Read full article
Already a subscriber? Login
0330 161 1234