IR35 & Direct Hires
What is Off Payroll Reform?
The IR35 landscape has gone through a dramatic change with the introduction of the Off-Payroll Reform. As a result, contractors working inside of IR35 can no longer receive Gross pay and be responsible for paying their own tax and national insurance. Instead the responsibility for deducting the correct amount of tax and national insurances when paying the contractor has moved up the supply chain, as too has the liability for the not paying the correct amount of tax and national insurances.
On the Off-Payroll Reform going live in April 2020, the tax liability now lies with the entity receiving the service, known as the ‘End User’, and the responsibility for deducting the correct amounts of tax and national insurances has moved from the contractor to the ‘Fee Payer’.
If you are a company who engages in contractors directly and pays them directly, then this means that you are acting as both the ‘End User’ and the ‘Fee Payer’, therefore bare both the liability and responsibility for ensuring the correct amounts of tax and employers national insurances are deducted from the contractors income and paid to the HMRC.
How can SQCP help clients who engage directly with contractors?
SQCP provides a payroll and management service for contractors recruited directly by the client. We act as the interface between the client and contractor, our contract helping to protect the client from tax liabilities for contractors working inside of IR35, Employment rights issues including European working time regulations, employment law, holiday pay, sick leave, whilst also providing a support service to the contractor.
How can SQCP help contractors engaged directly by a client but working outside of IR35?
If you are a direct contractor working outside of and are concerned about your liability, IR35 contract wording or you are dissatisfied with the service you currently receive from your existing agents, then SQCP can help. Our contract wording has been deemed a pass by Qdos and although the IR35 landscape is ever changing, the current wording means that the contract is strong enough for Qdos to offer you to take up their insurance IR35 packages.
SQCP also offers a Business Insurance Package via Qdos Consulting. Please take a look at the various packages, including IR35 Insurance on offer at http://sqcp.qdosconsulting.com/