Top tips for working remotely

We are all now faced what with is a rapidly changing landscape. Many of us are acclimatising to working remotely.

Whether you do it regularly, or have never done it before, establishing a regular routine is the key to ‘getting stuff done’!

Here’s a handy infographic of some other tips to help you make the most of remote working.

Remote working Graphic

 

If you have any other tips, we’d love to hear them in the comments below! 

what is IR35 and how will it impact me?

What is IR35 and how will it impact me?

The 6th April 2020 marks the ‘go live’ date for the IR35 tax legislation to enter the private sector. It will be one of the biggest changes in tax legislation in many years and its impact on the contracting industry will be felt far and wide.

We’ve spent the last few months attending various seminars on IR35 to help our clients and contractors to navigate their way through the minefield of legislation and remain compliant.

In case you’re unaware of IR35, here’s a guide and handy info graphic…

IR35 Picture

What is IR35

Its purpose is to close a tax loophole where contractors could set up their own limited company to reduce their tax liability.

In most instances, when a limited company contractor commences assignment, the contract is with the limited company itself. In reality, it’s often more likely a employer-employee working arrangement, and HMRC have considered that they should be taxed as an employee. This is often referred to as a ‘deemed’ employee’.

IR35 is looking to identify ‘deemed employees’ and ensure they pay the necessary amount of tax; however, it can also greatly impact individuals who are genuinely operating through a limited company structure.

It also had an impact on UK personal service companies (PSCs) – in lay terms, these are limited companies with a sole or majority shareholder/director who delivers the services of the company.

Why is IR35 happening?

Current and previous governments have taken the view that contractors were exploiting the tax system for limited companies by leaving permanent roles to create limited companies. And carrying on working at the same business in a limited company capacity, while paying considerably less tax and national insurance than when they were permanently employed.

HMRC have viewed this as a form of tax avoidance and defined this as ‘bending the tax system rules to gain an advantage that was never intended’.

Since IR35 legislation was introduced in 2000, contractors viewed to be employees in HMRC’s eyes (‘deemed employees’) have been made to pay tax at the same rate as employees. This is also more than they’d have to pay if they were deemed to be limited companies.

While ‘deemed employees’ must pay the equal amount of tax as comparable employees, they do not have any of the benefits that permanent employees have, such as holiday entitlement, company pensions and sick pay. Many of those opposed to IR35 have viewed this as unfair.

Why does IR35 compliance matter?

In its current guise, contractors are responsible for carrying out their own assessment to whether they fall inside or outside of IR35. If you incorrectly complete the assessment stated, you’re outside of IR35. If you’re viewed by HMRC as a ‘deemed employee’ and classed as inside IR35, then you’ll be required to pay back taxes of up to six years, plus interest and penalties.

From April 6th 2020, the client (or fee payer) will be responsible for determining whether an assignment is inside or outside IR35, and whether the contractor is treated as a ‘deemed employee’ and are taxed accordingly. They will also be responsible for paying employer’s NICs and the apprenticeship levy. More importantly, they client will be potentially liable for any unpaid tax and NIC’s if HMRC take the view that they haven’t taken ‘reasonable care’ in assessing the contractor’s status.

There is a partial exclusion of IR35 for SME’s. In HMRC’s eyes, this is defined as not exceeding more than two of the following criteria

  • Annual turnover above £10.2m
  • Balance sheet total of over £5.1m
  • More than 50 employees

What are the contractor consequences of working inside IR35?

When working inside the IR35 legislation, you’ll be required to pay NIC’s and income tax on your earnings. (This is instead of a blend of dividends and minimum salary taken from your limited company).  You won’t however receive any employment benefits such as sick leave, company pension or holiday entitlement from the company you’re working at.

For contractors currently working in the private sector, this is paid via a ‘deemed payment’ which is the payment you’ll be required to make to HMRC at the end of each tax year. This must also consider the additional tax you have to pay as a result of working inside IR35.

Calculating the ‘deemed payment’ is a complex and often convoluted matter. Hence, why many contractors are seeking external advice and support for it.

Contractors who fall inside the scope of IR35 and inside the rules for medium and large do not need to make the calculation themselves. Under new legislation, your fee-payer will do this on your behalf and deduct the NICs and Income Tax from your invoice before paying you.

Contractors will be permitted to know how the decision on their IR35 status has been reached.  If they cannot agree, a process of appeal to the client by the contractor must be available. HMRC will not have an exact appeals process in place, and the contractor can only raise disputes through the income self-assessment process.

Determining IR35 status

In the run up to IR35, HMRC has released an online tool called ‘Check Employment Status for Tax’ (CEST). Its purpose is to help clients/fee payers to determine the status of contractors they have on assignment.

Once the clients/fee payer has completed the checklist on the site, they will receive a ‘Status Determination Statement’. This should be issued to the contractor on the first day of their assignment and must include the decision made as well as the reasons behind this decision.

Failure to provide contractors with the statement will mean that they haven’t met their obligations and will be liable for any incorrect deduction of tax until it’s been provided.

IR35 next steps

To ensure everyone remains compliant with of the legislation, it’s of major importance that all parties in the supply chain are working together.

If you’re a contractor and aren’t responsible for deeming IR35 status, you still are able to work with the recruitment business and client to increase the chances of it being accurately viewed.

While all of this may seem like a massively complicated matter, we are able to provide detailed assistance with the new legislation.

Using our own knowledge and our external partners, we’re able to obtain the right information to help contractors and clients to successfully implement IR35.

Contact us to discuss further on: 01925 748 320

 

What will the IR35 reforms mean to you?

While it may feel as if the only subject of concern at present is Brexit, there is new legislation on the horizon which will have a massive impact on the UK’s contractor workforce, if it goes ahead.

Read more

Everything you need to know about IR35

Following the recent changes to IR35 legislation, we’ve compiled our most frequently asked questions since the changes first came into place and discuss how they could affect workers engaged via Limited Companies in the future.

Ionic meet St Rocco’s

Today we got to meet the hardworking staff that help St Rocco’s provide such a fantastic service.

We presented St Rocco’s staff with a cheque for a grand total of £1428.80, money raised from your support of our Manchester 10k run in May.

St Rocco’s nurses were amazed at the amount we raised and explained that the majority of your donations will help pay for St Rocco’s Hospice at Home Service which aims to support people who wish to remain and spend their last days at home if that is their choice. This service is provided by a team of experienced healthcare assistants who give practical nursing care and psychological support to patients and their families.

We want to say a massive thank you to all of those who have contributed in support of St Rocco’s and Ionic.

Cheque for St Rocco's

 

Win an iPad Mini with Ionic!

We’ve teamed up with CK Tools to find out your thoughts on the construction job market.

To be in with a chance to win, simply complete the survey below;

https://www.surveymonkey.com/s/CKtoolsandIonic

Keep an eye out on our Facebook page for competition updates.

ck and ionic

Survey Terms and Conditions

  1. One winner will be chosen random from entries received.
  2. The winner will receive an iPad mini.
  3. The winner will be notified by social media and must provide a postal address to claim their prize. If a winner rejects their prize or the entry is invalid or in breach of these Terms and Conditions, the winner’s prize will be forfeited and Ionic Recruitment shall be entitled to select another winner.
  4. The prize will be sent to the winner by post.
  5. The prize is non-exchangeable, non-transferable, and is not redeemable for cash or other prizes.
  6. The prize cannot be shipped to outside of the UK and Ireland.

2015 Marks a Change in Construction

After the Queen’s speech we reflect on the Conservative government’s investment in the housing market and the effect on apprentices.

George Osborne announced a new ‘Help To Buy’ ISA, where for every £200 a first-time buyer saves towards a home, the Government will give them a £50 top-up. Furthermore, the Government has set a substantial target of building 200,000 new starter homes by 2020 and plans to release public land for the construction of up to 150,000 new homes.

Read more

Ionic Bake Sale – The Result

On Monday 27th April we held the Ionic 10k Run Bake Sale at Chadwick House, Birchwood Park to raise money for St Rocco’s Hospice.

The Ionic team baked lots of wonderful cakes; including the very popular lemon drizzle cake and red velvet cake.

The cakes went down a storm and we are delighted to announce that we raised an amazing £134.27!

We would like to say a big thank you to everyone who came down to give pounds and gain a few pounds for a very worthwhile charity.

For more details on our run and our chosen charity, visit our JustGiving page: https://www.justgiving.com/IonicRecruitment/

Ionic Bake Sale

Ionic Bake Sale