IR35 – Which of your clients will be applicable
The rules apply to all public sector clients and private sector companies that meet 2 or more of the following conditions:
Annual turnover of more than £10.2 million.
Balance sheet total of more than £5.1 million.
More than 50 employees.
IR35 – Who it applies to
The new OPWIPS rules will apply to any worker who is paid through an intermediary:
Limited Company workers.
Limited Company workers under an Umbrella company (Umbrella company to implement).
Any workers who are paid through an Umbrella company, it is the Umbrella Company’s responsibility to implement the deductions.
CIS and Managed Agency workers are excluded.
If you are unsure if a worker falls inside or outside the IR35 rules, a HMRC IR35 test is available to assess.
IR35 – Who makes the decision
All public sector authorities and medium-large-sized private sector clients receiving services from a worker will be responsible for:
Determining a contractor’s IR35 status.
Ensuring the correct deductions are taken from the worker’s wages.
Communicating the determined status to the worker.
Small business clients are exempt from these new changes.
IR35 – What is required
Effective From 5th April (Monday):
Split Timesheets.
Required Data.
Date Of Birth.
Gender.
National Insurance Numbers.
Starting Declarations.
IR35 – Changes to Pay & Bill
The UK Public Sector client flag has been removed from the Client Maintenance screen.
Ticking the Always subject to PAYE flag will let the system know they are applicable to the IR35 rules.
Flag is replicated in Assignment Maintenance.
If using a standard import method, all clients will be set to included within the rules.
The portals will be updated to reflect these changes.
You will need to change the flags on any existing clients who now fall under the IR35 rules. The updated change can be applied to all live assignments.
Full details can be found in the following release notes
Release notes Access Pay & Bill 10.7.0
This release contains all the information you need to know about IR35