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IR35 for Contractors

Retaining net pay for existing contractors - essentially, we currently think that most negotiation between clients and contractors regarding pay post-April 2017 is going to be focused on the employers National Insurance costs associated with running a Personal Service Company whilst working within IR35 (if the assignment is assessed as falling within IR35). Read more.

Tax withholding liability - in the normal scheme of things employers NI charges would be borne and administered by a PSC, or any Limited Company, as well as deductions of employees NI and Income Tax (even those of a PSC director). The legislation is aiming to move tax withholding responsibility and liability, but that it is a different point to which party should bear the Employers NI cost. Read more.

Tax withholding process - Nationwide People Ltd do not at this time intend to operate payroll / tax withholding directly and are seeking other commercial solutions to this. Read more.

There could be substantial financial risk associated with converting from contract to permanent work with a client. Read more.

Will contract assignments fall within or outside of IR35? - at the moment, our understanding is that that the Digital Tool used for assessment may be heavily focused on "substitution" Read more.

Did the dividend tax treatment change in April 2016, already make running a Personal Service Company less attractive? - the way dividends are taxed changed in April 2016 and needs to be considered in any net pay considerations. Read more.

Will there be retrospective taxation associated with the new IR35 rules? - we are not yet clear on whether or not contractors could see retrospective tax charges for contract work previously considered outside of IR35 that comes within IR35 post April 2017. Read more.

Will contract assignments fall within or outside of IR35? - at the moment, our understanding is that the proposed Digital Tool used for assessment will have a focus on "substitution" Read more.