In a previous article posted to this site entitled ‘IR35 | Off Payroll Working Rules’ we explained the nature of ‘off payroll working’ within UK tax legislation designed to prevent tax avoidance by workers supplying their services to clients through an intermediary.

Tim Thompson of Kangs Solicitors now outlines changes to the legislation anticipated to become effective on 6 April 2021.

The team at Kangs Solicitors offers a wealth of experience representing companies, directors and individuals facing both civil tax issues and criminal tax issues.

We are highly rated by the leading law directories including the Legal 500 and Chambers & Partners.

For an initial no obligation discussion, please call our Team at any of our offices detailed below:

The Proposed Changes to IR35 | Tax Avoidance Solicitors

The changes are designed to bring the regulations affecting the Private Sector in line with those in operation for the Public Sector as follows.

Small Businesses

If a worker provides services to a small business, any intermediary, such as a ‘Personal Services Company’, is responsible for deciding that worker’s employment status and for assessing the extent to which the rules apply.

To qualify as a ‘small business’, two of the following criteria have to be met:

  • annual turnover is no more than £10.2 million,
  • the Balance Sheet total is no more than £5.1 million,
  • the number of employees does not exceed fifty.

Medium or Large Businesses

If a worker provides services to a medium or large business, the responsibility to ensure compliance with IR35 by accounting to HMRC for all associated tax and NIC falls to the business to which the services are actually supplied and not the intermediary, or Personal Services Company.

Legislative provisions are also anticipated to prevent subsidiary companies from being utilised to circumvent the efficacy of the regulations.

How Can We Assist? | Kangs Tax and Commercial Solicitors

Issues involving HMRC can be very confusing, worrying and daunting but are frequently resolved with a proactive approach.

Kangs Solicitors fields highly regarded teams of both criminal and civil lawyers experienced in representing companies, directors and individuals in vast array of tax issues. 

Who Can I Contact For Help? | Kangs Tax Lawyers

Hamraj Kang leads an award-winning team of solicitors nationally reputed for its excellence.

We welcome new enquiries by telephone or email.

Our team of lawyers is available to meet at our offices in London, Birmingham or Manchester or, alternatively, we are happy to arrange an initial no obligation meeting via telephone or video conferencing.

For initial enquires please contact:

Hamraj Kang
hkang@kangssolicitors.co.uk
07976 258171 | 020 7936 6396 | 0121 449 9888

Tim Thompson
tthompson@kangssolicitors.co.uk
020 7936 6396 | 0121 449 9888

John Veale
jveale@kangssolicitors.co.uk
0161 817 5020 | 0121 449 9888