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When should I think about IR35 and Off-Payroll Working Rules?

The off-payroll (IR35) rules need to be considered where you intend to engage a consultant via an intermediary such as a personal services company i.e. Joe Bloggs via Joe Bloggs Limited.  Where this is the case, you will need to comply with your obligations under the off-payroll rules and carry out a status determination statement.  That is unless your company is considered to be a small company by meeting two or more of the following criteria during a 12 month period:

  • Turnover – not more than £10.2 million
  • Balance sheet total – not more than 5.1 million
  • Number of employees – no more than 50

If that status determination statement concludes that the individual is “inside IR35” i.e. they would be regarded as an employee of your company “but for” the presence of their limited company, then you will need to make relevant deductions for tax and NI.

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