Do you employ contractors or agency people ?
If you do I am going to give you a free “heads up” for Christmas.
You may have people working for you who are self-employed on a Limited Company basis who you pay on an hourly rate basis.
Do you realise that from April 2017 the Employer is responsible for determining whether that person falls inside or outside of IR35.
It if turns out that one of your agency people falls inside IR35 then you are responsible for calculating and collecting tax on a PAYE basis.
Therefore, you need to apply some tests to see if your agency person falls inside or outside of IR35 – if you get it wrong you could be liable for a fine.
Some, but not all of the tests include
Is the contractor at financial risk in the project?
Is the contractor working exclusively only for one client?
Does the contractor work with their own materials on site?
Does the contractor have to rectify work at their own expense?
Can he or she provide substitutes to carry out the work in place of themselves?
Is the contractor “part and parcel” of the client’s organisation?
The link below will help you determine whether your agency person is paying the correct amount of tax
If you do not want to apply these tests then you need to find a different way to get the people you need to work on your project.
The options open to you are limited.
You can either employ permanent people on a PAYE basis or enter into a design partnership with an external company
This is where we can help
We can form part of your design team for any infrastructure project to provide our highway design and BIM services. We can work from our offices with regular face to face meetings to ensure you get your project completed on time and to budget, comfortable in the knowledge that you are on the right side of HMRC.
We offer a full range of highway design services and drainage design for all your needs including the design of major bypasses to signalised junctions and small improvement schemes, including footway schemes, junction re-alignments and roundabout designs for new developments.
We can create 3d models of your scheme for clash detection, 4d schedule simulation and 5d cost estimation.
Merry Christmas and a Happy New Year
Call now on 0800 061 4594 to discuss how we can help you