Are your contractor relationships safe from IR35?
The IR35 Regulations regulate off-payroll working in the private sector. The launch was temporarily suspended due to Covid but then came into force with a soft launch in April 2021. HMRC has been fully enforcing these rules from April 2022 onward which could mean trouble for a lot of Start ups and SMEs that rely on contractors. Check out the this for template shareholders agreement for other startups too. The implications for SMEs is that you will have to make a call as to whether your freelancer is an employee or not for tax purposes. If HMRC finds your contractor relationship to be inside IR35, you could be liable to pay: · income tax and National Insurance contributions on behalf of your engaged freelancer; · your own employer National Insurance as if that individual was an employee for the time of the engagement; · interest on these amounts; and · HMRC may also enforce penaltie...