Learning IR 35 Changes for Contractors in 2022 With an Accountant in Cobham

by | Jun 14, 2022 | Accountant

The rules of IR 35 are not changing, but the responsibility of compliance is shifting to the end-user. What happens when a contractor is in IR 35? The conclusion should be communicated to the end user’s parties who have partnered with the contractor. It is done by a status determination statement that gives the conclusion and reason. If not done, the responsibility of deducting tax and national insurance lies on the end-user.

Moreover, the end-user has to ensure that parties in the supply chain are compliant and that communication is passed up to the final intermediary. The changes are a lot for a simple-minded end user to grasp. Therefore, getting help from an accountant in Cobham can suffice.

The process is straightforward when three parties are involved but would prove daunting when many people are on the supply chain. Ultimately, there will be a financial impact on both the end-user and the contractor. They’ll need to sit down to discuss their financial position on both ends. Once the findings are communicated, the contracting expert can appeal. The end-user has about 45 days to get back to the contractor as they are the only party that can reconsider the findings. This process can become a burden to the administration, and it is only right to get help from an accountant in Cobham who can help you foresee such processes.

It’s the responsibility of the final middle-man in the supply chain to deduct national insurance and income tax. A contractor will continue to invoice the end-user through the intermediary, which will, in turn, pay the intermediary company. An accredited accountant in Cobham can help an intermediary company put an individual on payroll, enter the gross salary as an invoice and deduct tax and NIC, among other services. They undergo continuous training processes to become updated with tax changes such as these. Contact David Beckman & Co Ltd at 01737844322 for more information on tax services.

Latest Articles