IR35 – Am I at risk?
If you are paying, or receiving payments as a limited company and the arrangement looks* like employment then the answer is YES you are at risk.
*if the limited company didn’t exist)
Have you heard the saying that if it looks like a duck and quacks like a duck, chances are it’s a duck? Well, that’s the view the HMRC takes on whether a working arrangement between two companies actually looks like employment.
The aim of IR35 legislation is to clamp down on working in a manner similar to an employee but under the disguise of a limited company.
HMRC have an over-complicated, technically-worded online system called ‘Check Employment Status for Tax’ (CEST) Tool you can use if you want to check your status, but word of warning – it has a proven track record of providing incorrect results.
Who is affected by IR35?
In reality the April 2021 changes only affect large businesses, or sub-contractors in an extended supply chain where the end user or main contractor is caught by the chain (and, of course, a trades person have their own Ltd companies). Two of the following three descriptions will need to apply before you need to consider the amended regulations:
- You have an annual turnover of more than £10.2 million
- You have a balance sheet total of more than £5.1 million
- You have more than 50 employees
If you are caught by the new rules you will need to identify sub-contractors who do supply their services through their own Ltd companies, and also communicate a status determination statement with them.
Contact us and we’ll take care of the whole thing, with 100% compliance GUARANTEED.
EEBS can quickly review current arrangements between a contractor and sub-contractor and provide a bespoke and compliant solution, contact us for advice today
When does it start?
In reality the April 2021 changes only affect large businesses, or sub-contractors in an extended supply chain where the end user or main contractor is caught by the chain (and, of course, a trades person have their own Ltd companies). Two of the following three descriptions will need to apply before you need to consider the amended regulations:
Who is affected?
In reality the changes only affect large businesses. So if you do not meet two of the following three descriptions then the new rules simply do not apply:
- You have an annual turnover of more than £10.2 million
- You have a balance sheet total of more than £5.1 million
- You have more than 50 employees
EEBS Guarantee
If, after a status investigation HMRC were to challenge our arrangements, or if a sub-contractor were to take you to an employment tribunal whilst being supplied by EEBS, we will manage the entire process for you, with full legal support. If we were to lose the case (and to date we have never lost a case) we would pay all the associated costs.
About EEBS
Uniquely within the industry our service has never been challenged in over 20 years of operation. Developed with the help of the Aspire Partnerships, our HMRC compliant solutions are tailored to reflect individual clients circumstances and to provide unparalleled levels of protection and peace of mind.
We have our own secure, easy to use online payroll portal
Easy to use
Our software is easy to navigate and you can access it on your phone or tablet at any time anywhere.
Online Tutorial
The portal has a simple tutorial that you can refer back to at any time. Request a trial today, you’ll be impressed!
Invoicing
By using the portal you can see how much your weekly/fortnightly/monthly payment bill will be before receiving your invoice, A proforma invoice is issued to you giving you time to check everything is correct and make amendments if required.
“We are confident that we can rely on EEBS to keep us up to date with any changes and ensure we continue to comply.”
Christine Shearing, Kenwood Groundworks
"J&J Windows & Doors Limited have been using EEBS Limited to pay my colleagues and I for over 6 months and I can quite honestly say that the service EEBS provides is superb! It allows me to remain self-employed, they ensure that I'm verified with HMRC, that my CIS tax is calculated correctly and most importantly that my wages are always paid correctly and on time. I would without a doubt recommend EEBS to friends, family, and colleagues."
James Last, J&J Windows & Doors
“I can call on EEBS when required without the worrying of being tied into an agreement.”
Peter James, Pete’s Landscaping
