The upcoming IR35 changes mean that:
1. medium and large businesses will now be responsible for working out the contractor’s employment status, not the contractor
2. The contractor will be given the reasons behind the decision and can dispute the decision if they disagree with it
3. Micro and small businesses are exempt from the changes. Therefore if a contractor works for a small client, the contractor will still be responsible for working out their own employment status.
To be classed as a small businesses you would need to meet two of the following criteria:
1. Annual turnover of no more than £10.2 million
2. A balance sheet total of no more than £5.1 million
3. And have no more than 50 employees.
The contractor responsible for working out the IR35 status must show supporting information to backup their decision, if the do not HMRC will hold them responsible.
Contact Peter at AIM GB for more information.