Many contractors know that April 2020 is the ultimate deadline for the impending IR35 changes in the private sector, but has your current contractor accountant informed you of what these changes are, and how you’ll be affected? And more importantly, what they are doing to ensure you’ll be supported fully during this period of transition?
In this blog, our Operations Manager Neil Kellaway highlights what your accountant should be doing now to support you and the services you should be receiving to ensure you’re IR35 ready.
Has your current accountant advised you on IR35?
Take a second to consider your knowledge and awareness of IR35, and how much of that has been provided by your current accountant.
Have they educated you on what IR35 is, and do they have services designed to help support you and provide advice on what to do if found inside?
Your accountant should know your current IR35 status, offer you unlimited contract reviews, support and guidance, without the need for you doing your own research.
Has your accountant made you aware of the impending legislation changes?
Come April 2020 the way in which Private contract’s IR35 status is determined will change. Just as Public sector contracts changed in April 2017, Private sector contracts will follow suit.
Whereas at present you make the decision on your Private contract’s IR35 status yourself, come April 2020 your status will be determined by the hirer (ie your client or agency). The associated tax risk will also move from you to the hirer, meaning that if your IR35 status is incorrectly identified, then it’s them who’ll be liable for the unpaid tax.
The rules set out to determine your IR35 status will not change so if you’re currently outside, then you should remain to be so post April 2020.
For more information on the impending changes and to see the answers to some of the most common IR35 questions, take a look at our IR35 FAQ section.
What services (if any) has your contractor accountant offered you to support the period of change come April 2020?
If you have heard very little or worse nothing at all, then it’s time to switch to an accountant who can fully support you.
At Intouch we’re doing just that by providing a service designed with your future in mind, regardless of which direction IR35 takes.
Clarity – giving you unlimited IR35 reviews
With your contract and working practices covered, we provide your end-hirer with everything they’ll need to make the right decision on your contract’s IR35 status. Whilst they make the final decision, we provide you with a report which will allow you to have an open discussion about your status in an easy-to-use format. We can even offer them legal support if they find they’re struggling to apply the ‘reasonable care’ that HMRC will expect from them.
Protection – switch between Umbrella and Limited to suit your contract
With minimal disruption and your finances kept up to date and in one central place, our Freeflex service is exactly what you need if your contract requires you to temporarily work on a PAYE basis. Having the flexibility to switch between your Limited Company and our Umbrella company is the ideal solution. You’ll have the safety net to easily switch at short notice, in the knowledge that your Limited Company’s daily tasks and accounts are still being looked after in the background, and will be 100% ready and up to date when you decide to switch back. Not only that, but your dedicated Intouch Personal Accountant is on hand to support you throughout your time using our Umbrella solution, ensuring that Intouch’s level of personal service is never compromised.
Support – law firm support from IR35 specialists
Intouch is supported by our group company Brookson Legal – the only SRA regulated law firm that focuses on IR35 for agencies and end hirers. Advising on IR35 since it’s conception in 2000 and with its members sitting on HMRC’s IR35 Forum, they know everything there is to know about IR35. Brookson Legal actively engage with end hirers and agencies to ensure the rules surrounding IR35 are applied correctly and that contractor risk is mitigated.
Any updates relating to IR35 come directly from Brookson Legal, and are passed onto our clients via their own Personal Accountants – so you’ll always be ahead of the game when it comes to IR35, and fully prepared with whatever HMRC have up their sleeve next.
Get the right IR35 support and the accounting service you deserve
By now you should have a good idea as to whether your current accountant is supporting you correctly when it comes to your IR35 status – both current and future.
But if you feel as though they’re lacking in their support, it might be time to switch. Take a look at our guide on switching your contractor accountant, or get in touch with our team of experts to discuss more in detail how our accounting services can help you.
This blog has been prepared by Intouch Accounting. While we have made every attempt to ensure that the information contained in this blog has been obtained from reliable sources, Intouch is not responsible for any errors or omissions, or for the results obtained from the use of this information. This blog should not be used as a substitute for consultation with professional accounting advisers. If you have any specific queries, please contact Intouch Accounting.