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IR35 Changes in April 2020 What I need to do!

 

 

Changes to IR35 in April 2020 and how to protect yourself as a contractor.

 

So what are the latest IR35 changes?

 

In April 2020, the Government have announced that the end user will be responsible for the underpaid tax for any contractor.

 

Who is the end user?

 

The end user is either the Company that engages the contractor and/or the agency.

 

So does that mean the contractor has no IR35 worries anymore?

 

Errrr no! Contractors have to conduct themselves as proper businesses in their own right and have a duty to pay the correct taxes.

 

So here are some amazing tips to make you very attractive to the end user and keep you IR35 compliant.

 

  1. You must have a website for the business and it must appeal to businesses that you contract for. You’ll be amazed at the number of contractors that don’t have websites. How can a business trade without a website these days?
  2. Get yourself some business cards, yes, its old school but it’s a very effective way to show you are constantly looking for new projects.
  3. Work from home when you want and whilst you are there, rectify some work in your own time without invoicing for the work and make sure you document it.
  4. Take potential new business clients out for lunch regardless if you are successful or not and again make sure you document it.
  5. Finally, and possibly the most important, obtain a list of potential colleagues, old and new, that could be put in place as a substitute and reciprocate theirs.

 

The changes to IR35, CEST et al will affect any non-contractor so make sure you are not classed in that bracket before April 2020 and keep away from any umbrella solutions.

 

Obviously doing the above does not supersede the actual signed contract so make sure you get the contract checked beforehand. Oh and make sure you submit and pay your taxes on time, but hey that’s what we are here for!

 

For further details:

Belfast – lee.fallon@myaccountantfriend.com

Birmingham – richard.ingledew@myaccountantfriend.com

London – iain.morrison@myaccountantfriend.com

Milton Keynes – kenny.fitzgerald@myaccountantfriend.com

 

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