Remember, if you ignore IR35 and your contract is deemed to be inside it, HMRC will issue a penalty of:
30% of unpaid tax if they find that you were careless about your status but didn’t know it was inaccurate.
70% of unpaid tax if HMRC finds that you knew you were inside IR35 and yet chose not to act.
100% of unpaid tax if HMRC finds that you have actively tried to conceal your IR35 status and underpayment of tax.
Is there an alternative?
Yes, you still have the option of umbrella companies. Umbrella companies are IR35-compliant because you’re taxed the same way as a full-time employee. They also come with a series of benefits usually given to employees but not contractors.
If you think you’re likely to lose out thanks to IR35, why not see how Workr’s award-winning, FCSA-accredited umbrella employment service could help you?
Our partnership with Workr
We’re combining our expertise at managing contractor/client relationships with Workr’s extensive knowledge of IR35 and compliance. With a range of solutions available to contractors, Workr are equipped to help you stay on the right side of the IR35 rules and protect your income.
Here’s how it works…
Status determination guidance
From speaking to your client to appealing to HMRC, Workr will walk you through your new responsibilities.
Prefer a simpler approach? Join Workr Umbrella and enjoy the freedom of a contractor with the benefits of an employee. Alternatively, please refer to the FCSA Member's Directory for all accredited umbrella organisations.
So what are you waiting for? Use the form below to request a callback and protect your interests today.