Welcome to the #IR35 party!

February 10, 2020

Some of the information you’ve been reading about IR35 has been pretty dull, so we thought we’d add a little creative flair and invite you to the hottest event in town – EdenGroup’s IR35 party.

To our contractors, recruitment agencies and end-hirers, we’re delighted you could join our #IR35 fine-dining experience. 

Help yourselves to the delectable hors d’oeuvres on offer, but please don’t take advantage. The champagne is in limited supply so join the queue to avoid disappointment! 

Are you all sitting comfortably? Good. Now let’s begin with the starter…

Soupe de ‘Legislation’ | What is #IR35?

A delicious piece of reformed legislation known as the ‘Off-Payroll Tax’ which aims to tackle the issue of ‘invisible workforce’. Served with a side of pink peppercorn sourdough and whipped butter. The soup tastes bitter at first, but pleasant notes of citrus fruit will eventually surface.

Insalata mista | When do the rules take effect?

Monday 6 April 2020 (onwards).

Boeuf bourguignon | Why has the legislation changed?

It aims to prevent tax disguised employment, which has benefited contractors and in some cases, placed PAYE employees at a disadvantage. 

Eton Mess | Who does #IR35 target? 

The Off-Payroll Tax legislation targets those who are registered as a limited company, and have long-term contractual agreements within medium-to-large corporations in the private sector. 

Cheeseboard | What are the known penalties?

If you’re found to be within IR35 following an HMRC enquiry, you must pay HMRC the tax and National Insurance contributions due, as well as any interest due on these amounts. If you don’t complete your tax and National Insurance contributions returns you may also have to pay a penalty. For more information, please visit gov.uk

Aperitif | In a nutshell…

Simply put, those that sit inside IR35 will pay broadly the same tax and National Insurance contributions (NICs) as their permanent counterparts.

NB: If you still have questions, check out our IR35 FAQ blog or get in touch today.

We hope you enjoyed your fine-dining experience. Please do come back again some time (and feel free to leave a tip)!