IR35 Changes Make Hiring Editing Service Companies Easier

British government’s reforms will make it easier and cheaper to outsource

Good news amidst the budget noise

The British government’s proposed changes to tax and borrowing have made a stir since they were announced on 22 September.

 

However, amidst all the noise, there was some good news. The government is proposing to roll back the most recent changes to the off-payroll workers’ rules (also known as IR35).

What is IR35?

The IR35 rules apply to workers providing services to clients through personal service companies or other intermediaries.

The tax authorities “look through” these arrangements to decide whether the workers are actually disguised employees and subject to employee taxes, rather than being genuinely self-employed.

Introduced in 2000, the rules have been amended several times since.

What’s being rolled back

The latest changes, made in 2017 and 2021, put the emphasis on large companies to verify the employment status of such workers, rather than the workers themselves.

This left these large companies potentially on the hook for any taxes that the tax authorities deemed had been avoided.

This made some clients hesitant to outsource to services companies, as they feared the tax authorities might deem the services companies’ workers to be effectively their own employees.

The government is now saying it will repeal these changes with effect from April 2023. This will mean the workers providing the service, not the client, will again be responsible for assessing their tax status and paying the relevant taxes.

Benefits for hiring companies

The repeal of the rules will have two benefits for hiring clients such as investment banks, brokers and fund managers.

First, it will save significant sums in compliance. Some clients have been hiring consulting firms to assess the employment status of outsourced workers, at the cost of thousands of pounds per time.

Second, the chilling effect of the rules meant some clients preferred not to take a risk. Either they didn’t outsource at all or looked to hire abroad. This effect will now be removed.

For companies looking to outsource their editing or supervisory analyst resource, they can now do so with confidence that they do not risk falling foul of the rules.

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Research Editors provides supervisory analyst and financial editing services to banks, brokers and fund managers across the globe.

We can assist you with a range of requirements, whether you just need an extra pair of hands during busy reporting periods, require longer-term cover or are looking to outsource your entire editorial department.

Contact us today to discuss your needs at info@researcheditors.co.uk or via our contact form.

For more information visit: https://researcheditors.co.uk/

Original Source: https://bityl.co/KCjr

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