With the introduction of the IR35 reforms in April 2020 it is clear that existing contractor workforces are going to be impacted.
The introductions of the changes will force the client companies to assess all roles to see whether or not they fall inside of IR35. For those that are deemed to be IR35 roles the company paying the sub-contractors invoice will be liable for the HMRC tax and NI deductions.
As a result of this change many sub-contractors will no longer enjoy the tax efficiency benefits they have leveraged in the past. The impact will be significant with upto 15% additional deductions having to be paid by the contractor.
At RRD.Digital we have partnered with London based solicitors and accountants to advise on the legal status of contractual terms throughout the contract chain, and ensure that deductions taken from sub-contractors are optimised and in accordance to the recommendation laid down by HMRC.