Buying Outcomes Rather than People
The new IR35 tax legislation came into effect in April 2021 to effectively close a loophole that has enabled individuals working in a similar way to an employee under the guise of a limited company for tax benefits. This potentially means that for companies using contractors, both Income Tax and National Insurance (NI) will need to be paid on behalf of the Contractor similar to that of an Employee.
Currently, there appears to be no clear statutory definition of a ‘Contractor’ unlike other definitions being very clear for ‘employees’ and ‘workers’. This has led to some scrutiny of HMRC, due to the unnecessary risk placed on organisations when trying to determine if IR35 applies to their Contractors. The concern is that a company may incorrectly determine whether a contractor falls outside of IR35 or not which could lead to HMRC tax avoidance fines.
One safe solution which we are fully able to support and deliver is for you to outsource your project requirements on a fixed-price outcome-orientated basis to us in order to mitigate any risk of fines and still provide you with the blend of skills needed to drive your IT and Telecom projects forward. Talk to us about the work you need to be done and we can agree a series of outcome-based fixed-price package milestones which enable you to stay in control.
Ground Floor, Honeycomb East (Purple),
Chester Business Park,
65 Petty France,
Regus, Windmill Hill Business Park,