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IR35 Tax Update - 21 March


IR35 tax update – 21 March

 

With IR35 coming into force in just two weeks’ time along with two spring bank holidays causing additional payroll pressures, it is imperative you inform us of how you want to get paid after 6 April as soon as possible.

Please enter your details here: www.sanctuarypersonnel.com/ir35-payment-changes

Upcoming payroll deadlines




If you haven’t provided your payment details by the deadline (shown above), payroll will be missed and deferred to the following week.

As previously stated, Sanctuary has engaged Freedom Friday to calculate gross payments, deemed payment deductions and process allowable expenses for contractors wishing to remain as PSCs. If you wish to remain working through a PSC, you must opt in to this service by completing the form here: www.sanctuarypersonnel.com/ir35-payment-changes

 

Sanctuary will be offering contractors these alternative options:

- PSC (inside IR35) deemed payments via Freedom Friday
- PAYE
- PSC – confirmed as outside of IR35 / out of scope
- Umbrella

Sanctuary recommend umbrella organisations that are full members of the Freelancer & Contractor Services Association (FCSA). The list of approved umbrellas can be found here: www.fcsa.org.uk/fcsa-full-members

We have negotiated with Liquid Friday for them to offer the first 4 weeks of umbrella service free of charge to Sanctuary workers.

If you want to use an umbrella company which does not appear on this list, we may have already completed due diligence and reviewed them. Please contact your Sanctuary consultant to discuss.

Please note, Sanctuary cannot work with any umbrella organisation offering contractor loan schemes, employee benefit trust schemes or any other remuneration scheme where tax isn’t fully paid.

Read more about contractor tax loan schemes: www.gov.uk/guidance/contractor-tax-loan-schemes-can-cost-you-more

Assignments outside of IR35 for public sector clients

If you feel that your assignment does fall outside of IR35, then you will need to speak to your line manager or client nominated IR35 liaison officer. Sanctuary requires a statement from the line manager, end client or vendor stating whether your contract falls inside or outside of IR35. The statement should be emailed directly from the client to us at ir35queries@sanctuarypersonnel.com.

Sanctuary is only allowed to pay workers in a compliant way, this means: 

  • We are unable to accept statements unless sent directly from the end client or vendor (they cannot be forwarded on by you or any other third party)
  • We are unable to determine or influence IR35 status

Assignments out of scope for private sector clients

There are some clients that could be categorised as private sector. We are currently liaising with these organisations to confirm their status as public or private sector, if you believe you work for an end client that is private sector and therefore out of scope, please contact your Sanctuary consultant.

Assignments for public sector clients who do not want to engage with PSCs

Some of our clients have stated they will not engage with contractors working through a Personal Service Company (PSC) after 5 April 2017. If you are operating as a PSC with one of those clients, we will contact you directly to discuss your options.

Next steps

Time is running out to decide which option you will choose from 6 April. If you haven’t already done so, please consult an independent qualified accountant who has an in-depth knowledge of agency working to discuss your individual circumstances.
Once you have decided, let us know by submitting your details: www.sanctuarypersonnel.com/ir35-payment-changes

If you have any other questions relating to IR35, please contact your Sanctuary consultant on 0333 7000 020 at the earliest opportunity.

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