IR35 - New legislation
for contractors

What is IR35?

The recent changes made to IR35 will have a considerable effect on companies hiring individual contractors where the detail and nature of the working environment more closely represents an employer-employee relationship.

HMRC will be coming down hard on companies who do not meet the requirements of this legislation. If it is found that a contractor or company is in breach, there are severe financial penalties to be paid. Under IR35, HMRC can investigate up to 6 years of history and evaluate past contracts to determine whether or not the legislation applies.

HM Revenue & Customs
Blueprints Builders

How does it
effect you?

In the public sector, responsibility for determining the correct IR35 status of contractors lies with the end client, who will be liable for paying the contractor’s Income Tax and National Insurance Contributions.

In the private sector, until April 2020, it is the responsibility of the contractor to determine their correct IR35 status and pay the correct taxes. However, from 6th April 2020, for medium and large sized clients, the public sector rules will apply to the private sector. As a result, contractors could see large retrospective rebates applied to their fees to pay for the additional financial burden experienced by their clients.

How can Adeo help?

We can ensure and certify our staff are all IR35 compliant, relieving you of the responsibility for any additional tax burden.

Are you a 
contractor?

and want to be IR35
compliant?

With Adeo, you can complete your current contractual working commitments and be safe in the knowledge that you comply to the current legislation.

Do you have a contractor you want to continue using without increasing your headcount?

Adeo can offer short term staff who are IR35 compliant and we will onboard your contractor to help you continue your working relationship without the IR35 tax burden. Our team fully review every contract and all working practices to ensure they meet the Governments requirements and your business is not placed at risk.