Aussies and Kiwis Contracting in London Affected
From April 2021, new IR35 tax rules will apply to contractors providing services to private-sector employers in the UK.
Contractors caught by upcoming changes to the Intermediaries Legislation (known as IR35) rules will pay significantly more tax and National Insurance (NIC).
This will impact most Aussies and Kiwis contracting in London.
IR35 was introduced in April 2000.
Its purpose was to combat the rapid growth in the number of professionals providing contract services to clients via their own limited companies to minimise their tax and NIC.
Under IR35, contractors working for a client in a similar way to that of an employee are treated as an employee rather than a “self-employed” contractor. As a result, contractors are liable to standard rates of employment tax and paying significantly more tax and NIC.
These IR35 rules proved hard to enforce due to the difficulty in determining if they applied on a case-by-case basis.
To address this problem, changes have been made to IR35. The onus has been shifted to the end-client to determine whether a contractor should be subject to standard rates of employment tax.
These rules were introduced to the public sector in April 2017, and are being rolled out in the private sector in April 2021.
What Will Be The Impact?
How will changes impact the contract market? What are the options for contractors? What does this mean for Aussies and Kiwis contracting in London?
To find out more, join our next webinar on 12 January 2021.