Employers urged not to let lockdown impact IR35 preparations

(2 minutes to read)

Despite a second lockdown, there are several ‘business as usual’ activities that need to be maintained – such as preparations for the private sector IR35 reform.

With the IR35 roll out expected to go ahead regardless of the second lockdown, employers are being urged not to let this put their preparations on hold.

Specialist insurance broker, Kingsbridge has raised concerns that the lockdown may impact firms’ arrangements for the 2021 off-payroll changes in the private sector.

Andy Vessey, Head of Tax at Kingsbridge, explained, “The news of a second lockdown has certainly raised a number of concerns for organisations, but there are several ‘business as usual’ activities that need to be maintained – in particular, preparations for the private sector IR35 reform implementation next Spring. While the next few months are likely to continue to be filled with uncertainty, we’re confident that there will be no further delay to these off-payroll measures.”

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Vessey added, “Interestingly, HMRC spoke about a ‘soft landing’ in a recent webinar, further re-enforcing that they will be going ahead with the intended changes. This ‘light-touch approach’ means that HMRC will not require the fee-payer to settle penalties for inaccuracies relating to the off-payroll working rules in the first 12 months unless there is evidence of deliberate non-compliance. However, this should not be taken as an excuse to avoid making sure you have an accurate, fair process in place ready for next year but should rather spur you on to make sure you can prove your compliance accordingly.”

“For employers, working with third party staffing firms and contractors now to ensure determinations are being made in a fair and accurate way will be crucial to success post 6th April 2021. Keeping the momentum going on preparations, despite the challenges we’re all facing in light of COVID-19, is important if recruiters, employers and contractors are to be in the best possible position next year as we attempt to recover from what has been a highly unprecedented 2020.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com

Why Dolan Accountancy?

Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £95 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours.
  • Free use of Contractor Umbrella – With changes in Public Sector IR35 Legislation we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella.
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams.
  • Free Access to FreeAgent – The founder behind the multi award winning FreeAgent platform was one of Simon’s first clients, therefore it only seems fitting that we offer all of our clients access to FreeAgent, free of charge.
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year.
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status.
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative.
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few.
  • Same day payments- We offer same day payments as standard providing funds are received into our account by 9am, for no additional fee.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.