IR35 Legislation Guidelines for contractors

This guide is to prepare our contractors for the upcoming IR35 changes to the private sector in April 2021. We’ve answered a lot of the questions we’ve been asked below, which we hope will help you. This is not a legal publication or guidance, however, it’s a tool to help you prepare for what is coming.

Venquis contractor FAQ’s February 2021

Does the client or Venquis do my IR35 status determination assessment?

The client will always make the determination.

Does the client decide my IR35 status determination on a case-by-case basis or as a blanket decision?

Each client will make a different decision on IR35. Some clients are making determinations on a case-by-case project basis, other clients are not making determinations but have decided that contractors can no longer use limited companies. We are working with all clients throughout the process but the determination does lie with them.

When will the client start discussing my IR35 status determination with me? Who will let me know the decision and when?

All clients are currently going through making status determination decisions. Rest assured we are in touch with all clients, and if you don’t already know your individual status determination, we will make sure that you do by the beginning of March.

Can I still operate through my Limited Company? 

If your assignment is deemed inside IR35 then Venquis will hold the contract with you on a PAYE basis and will be required to tax income at source.

What costs would I incur if I were to go through an umbrella company/PAYE?

When working through Venquis there will be no extra cost to you for our PAYE solution. Umbrella companies will charge a weekly or monthly fee.

What would be my change in take home pay, and how do I work it out? 

This is one question we can’t answer, as your tax situation is personal to your individual circumstances. We can though give you a rough guide on what your income tax rates are, so please get in touch with us.

If I go through an umbrella company does the contract sit with them, or with Venquis?

You are still a Venquis contactor and Venquis manage the assignment overall. Your contract will sit with the umbrella company and they will handle all your payments.

Am I paid directly by Venquis or my umbrella company?

If you are with an umbrella company, they will pay you directly.

What umbrella company should I choose?

There are a number of companies we’ve worked with in the past that provide umbrella solutions, and we can give you the details for these. It’s your obligation to find the best solution for you however.

How will I know if my contract is within the scope of IR35?

Your IR35 status should be decided on a project by project basis and there should be no “blanket assessments” made across a client, role, or agency contract.

To assess your current employment status, use HMRC’s online tool CEST. It is designed to ask a series of questions concerning the working practices of your contract, which will then determine your employment status. You should answer the questions accurately and with reasonable care. It will be the fee payers (Venquis) responsibility to ensure compliance. 

HMRC have stated that the results of the CEST tool can be relied upon providing that the answers to the questions reflect the working practice of the assignment.

What are my options if the role I am applying for is deemed Inside IR35?

Ultimately, it means you will be taxed at source and be put through a normal PAYE process. This may be via your agency if they offer such a service (Venquis does), through a Payroll company or directly with the client.

It may also be possible for you to operate as a PAYE and still engage via your Ltd company. Find out how here.

If I am hired through a recruitment agency, what should they be doing for me?

• Notifying you of the IR35 status of each assignment prior to submitting your CV.
• Provide payroll options either via themselves or alternative providers.
• Not providing you financial advice (they are not FSA accredited).
• Providing all relevant contractual paperwork.
• If paying you via their own PAYE then taxing at source, making all appropriate deductions and payments to HMRC. Providing you with pay slip each payment cycle.
• Keeping you informed of new vacancies.

Who can I discuss my status with, as my current agency is not doing their due diligence about IR35?

Time to change. We would advise you to contact us and speak to one of our trained Consultants who can provide the level of service you should expect.

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The reality

At Venquis, we will continue to work hard to ensure our clients and our contractors are as informed and prepared for IR35 as possible. Contact us if you would like further advice.