Contractors and IR35

If you are a contractor and would like some advice on possible tax advantages please contact us straight away so we can go through all the different scenarios you may be facing in detail.

What YWC does

We offer a full range of services for contractors much like our non-contractor clients. Specifically for contractors we provide company secretarial services, tax computations and have experience in handling IR35 contracts or disputes.

There are many factors to consider when deciding if a contractor is to be held accountable to IR35 legislation. We can guide you through the process and help you understand the relevant employment law. The taxman is not always correct and we do have experience in helping you draft contracts and can put your case forward if needed.

Why is it important?

The cost of employee and employer national insurance are considerable if done wrong including interest and penalties. Therefore we suggest seeking advice before going ahead.

Fundamental factors to consider are:

·  Control;

·  The right to get a substitute or helper to do the job;

·  Mutuality of obligations.

Other factors to consider:

·  Financial Risk;

·  Length of engagement

·  Basis of Payment;

·  Part and parcel of the organisation;

·  Right of dismissal;

·  Intention of the parties;

For more information, see our IR35 and contractors helpsheet.

 

Employment Status

Trying to decide whether someone is employed or self-employed is not always as straightforward as it might appear. Many people assume they are free to choose, but this is not the case.

What is the difference?

Firstly it is important to consider whether you have a contract of service and work for someone else, or a contract of services which means you are self-employed and contracted to complete work.

For Tax purposes there is no definition of the two and so what matters is the personal relationship and each individual situation.

Why is this important?

Getting this confused will have costly consequences. It is not only a question of employees and employers national insurance, because being classified as an employee also gives rise to all sorts of employment rights such as holiday pay. The decision has to be made by the employer and if you get it wrong it is going to be very hard to recover the back tax, interest or penalties from the worker.

YWC can help

We can help by reviewing your existing arrangements and by giving our professional opinion. We can also help with contracts for services to advise on what might work best for your business.

Also as part of our advice on employees and tax planning we can help you decide which types of remuneration packages to use with your employees in order to attract and keep quality staff.

Although there is no definitive answer as to how you decide if you are self-employed or not, the following points should be on your checklist.

Fundamental factors to consider are:

·  Who has control;

·  The right to get a substitute or helper to do the job;

·  Mutuality of obligations.

Other factors to keep in mind are:

·  Provision of equipment;

·  Financial Risk;

·  Basis of Payment

·  Opportunity to profit from sound management;

·  Part and parcel of the organisation;

·  Right of dismissal;

·  Employee benefits;

·  Intention of the parties;

·  Length of engagement.

 

Payroll and PAYE Returns

We understand that Payroll can sometimes get complicated and we know it has to be done on time especially because the employer is responsible for any mistakes.

At YWC we ensure that all sick pay or maternity pay calculations are correct for your company so you can spend more time running your business.

We can review your payroll records or PAYE returns, check for new employees and help identify any concerns or common errors that the inspectors look for.

Here at YWC we are more than happy to offer tailored payroll services to suit your needs. If preferred we are able to provide only payroll services for you.

Included below are some of our payroll services:

·  Employee payslips;

·  Monthly summaries;

·  Departmental reports;

·  Dealing with leavers and starters;

·  Provision of analysis of staff costs;

·  PAYE returns for the Revenue;

·  Assistance with automated payment set-up to your employees;

·  CIS returns completed by us.

And at year end we can do:

·  Employer Annual Return;

·  Employee summary;

·  benefit and expenses returns.

Including any related tax planning advice...

Beyond the payroll compliance service, we offer comprehensive advice on all employment tax issues including...

·  Tax efficient remuneration strategies;

·  Planning for retirement;

·  Termination payments;

·  Inducement payments;

·  Company car and van strategies;

·  Benefits planning.

Call us now to arrange a free PAYE check so we can test for any issues you might have before the Taxman sees them.

 

PAYE Healthcheck

Our PAYE Health check service is designed to find any PAYE issues first!

Why not call us on 0871 976 9168 prior to a visit?

The health check can...

·  Review and sample check your payroll records for errors;

·  Sample test the most common errors that the PAYE inspectors look for;

·  Statistically analyse your completed PAYE returns;

·  Sample check the completion of PAYE returns;

·  Compare your PAYE returns against your annual accounts;

·  Sample check leavers and starters to make sure they are correctly dealt with;

·  Review statutory maternity pay, statutory sick pay, student loan deductions and working tax credits;

·  Identify any workers where status issues may be a concern;

·  Check completion of end of year returns;

·  Review benefit in kind and expenses disclosures and calculations;

·  Check expenses dispensations;

·  Identify any PAYE planning opportunities.

We can also provide a similar service in respect of a CIS for the construction industry and a VAT health check.

For more information see our useful links:

·  The basics of PAYE helpsheet

·  The construction industry scheme helpsheet

Next Step:

Please contact us if you need further advice, have any questions about our services, would like a free consultation