IR35: How Britons can navigate tax updates – ‘never the right time’ for changes | Personal Finance | Finance


IR35 refers to tax legislation which has the purpose of cracking down on tax avoidance and ensure everyone is paying their fair share. As the Government explains: “The rules make sure workers who would’ve been an employee if they were provided their services directly to a client, pay broadly the same Income Tax and National Insurance contributions as employees.” However, with regulations set to change, there is understandable hesitancy about what this could mean. 

“It is important to remember this has been through Parliamentary due process and ultimately, it is something that has to be grappled with at some point.

“No point will be the right time, it will never be the right time for these kind of changes.

“Although this is arguably the worst time for many businesses, with the right approach and clear and transparent process oriented legal services, it is a surmountable challenge.”

So, with IR35 changes pushing ahead, it will be the responsibility of businesses and contractors alike to get to grips with the new rules.

Although, on a surface level, this may appear complex, Mr Paulin has suggested pacing oneself when it comes to the legislation will be key.

He added: “There is good news. If businesses get sensible, solid legal and administrative support, it is possible to combine law and technology.

“This will enable businesses to streamline all of their compliance processes, for example onboarding and anti-money laundering and compliance with IR35.

“The digital age post pandemic is even more upon us, and advisers need to support everyone in streamlined and fluid ways.”

In this sense, Mr Paulin concluded by urging businesses to reach out to gain advice on what can often be a complicated issue.

This, he said, will ensure contractors continue to get the level of support they both need and expect. 

He said: “It is essential that medium and large business gets in touch and starts to have conversations.

“It is essential there is a dialogue which is begun with those who have genuine expertise and have an in-depth knowledge of both the new legislation and HMRC compliance and corporate best practice.

“If those conversations are had, and they can be had in a fair-minded and progressive way, then there is no reason in principle why what appears like a hurdle is in fact more like a curb.”

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