Cogent IR35 and Off-Payroll Tax Defence Tool

Victor Korman, Managing Director of Cogent Accountants, has had an in-depth look and studied the proposed new legislation on IR35 and the Off-Payroll Tax and has detailed his thoughts and findings in the article below in order to explain the new legislation and provide a Defence Tool for contractors.

New legislation on IR35 is due to come into law in April 2020. It is important for all in the freelance contracting work chain to understand what the new legislation is and equally what it is not.

The new legislation is NOT a new way of assessing the employed or self-employed status of a freelance contractor. The law is essentially the same as it has been for 20 years since IR35 came in to play and the same criteria needs to be reviewed to make a status assessment.

What IT IS – is a switch of the liability for IR35 taxes from the freelance contractor’s own company to the end client or agency fee payer.

This means that your end client and agency will be very concerned about your status and may have an interest in assessing you as IN-IR35 so that they don’t take on board any tax risk. This status will cost you between 15% – 25% of your current net take home pay.

You and your colleagues need to be starting a conversation with your agency and end client to see what their views are and confirming to them your freelance OUT-IR35 status.

Please see the full Cogent IR35 and Off-Payroll Defence Tool here.

We at Cogent are happy to come out and see you and colleagues to discuss what you can do about the Off-Payroll tax legislation. Call us and arrange a free appointment for an expert opinion. NOW IS THE TIME TO PREPARE.

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