Name: IR35 - what is it? | PayStream
Uploaded: 2020-03-17T03:40:47.000Z
Duration: 1 min 57 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Refers to a piece of legislation that applies to limited company contractors.

If you are working for a client for your own limited company, and in reality, you work in the same way as an employee of the client.

I are 35 says that you need to pay employed levels of tax and national insurance.

This is known as working inside the scope of I R 35.

Many limited company contractors legitimately work outside the scope of I R 35.

This means they are generally in business on their own account.

Providing service is to a client on a contract for service is in this scenario.

They enjoy greater tax efficiency and often pay themselves a mix of salary and dividends.

Hates Jamesy carries out routine enquiries from time to time to check that companies are operating and paying the correct taxes.

During an I R 35 inquiry, HMRC will ask for evidence you have considered I are 35 and ask you to demonstrate why you fall outside.

It is the public sector body that is responsible for determining your I R 35 status, and it is the recruitment business as the feet payer that is responsible for deducting tax and an eye.

This will also be the case of the private sector.

From April 2020 though he expects more business clients to be excluded from the rules at Pay Stream.

Our compliance team can assist you with all aspects of I R 35 from reviewing your contracts to carrying out a thorough analysis of your working practices.

 Get in touch with our team today on 0161 93 0213 or via email at i r 35 at pay stream dot co dot UK to find out more. 