If any of your company’s income is caught by the Intermediaries Legislation (known as IR35) you will need to make a “deemed salary” calculation.
Also if any of your company’s workers regularly work under the control of one of your customers then this has to be reported to HMRC under the Employment Intermediaries legislation. There is not necessarily any extra tax to pay, but there can be penalties for not reporting this properly.
The following questions will help you establish whether these rules might apply to your company:
- In the past year, did your company charge any single customer(s) more than £680 per month (for three or more months) for services provided by any individual (including you, any directors, any employees and any subcontractors)?
- If so, could your customer control (or have the right to control) the methods of the work of that individual (either in practice OR in accordance with a contract)?
- Was the individual paid in any way other than through payroll?
If you answer no to any of these questions then the employment intermediaries legislation does not apply. If you answer yes to these questions you will need to assess whether you need to take further action.
Separately, if your company provides an individual who acts as a director of your customer (whether formally appointed as a director or not) then the Intermediaries Legislation will apply.
If you would like to speak about any of these points please book an appointment using our online appointment system.