The complex world of tax legislation can seem daunting, but at BSS, we aim to simplify it for you. One term you might come across as a contractor is 'IR35', or 'off-payroll working rules'.
These rules ensure that workers, who would have been employees if they were directly hired by a client, pay roughly the same Income Tax and National Insurance contributions as employees.
The off-payroll working rules, known as IR35, come into play when a contractor provides their services through an intermediary like a personal service company, a partnership, or an individual to a client. The client, also known as the engager, hirer, or end client, is the organisation receiving the services of the contractor.
The purpose of these rules is to create parity in the tax system, ensuring that contractors working like employees, but through their own limited company, pay approximately the same Income Tax and National Insurance contributions as directly employed counterparts.
It's important for contractors to understand and navigate these rules effectively. Misunderstanding or misuse of IR35 can lead to significant tax liabilities and penalties.
Navigating tax rules like IR35 doesn't have to be overwhelming. With BSS, you'll have the guidance you need to understand these rules and work within them confidently.
We're committed to helping you work smarter, not harder.
