IR35 Questions and Answers:
Why have I been deemed Inside IR35?
The end client have run the CEST tool on your role and deemed you Inside IR35
I have run CEST tool and don’t agree with the decision, how can I appeal this decision?
Our clients have an appeal process to follow, we will support you with this. You will need to collate all the relevant information to back up your appeal and liaise with the team on IR35@envisage-recrit.com
I have not run CEST tool myself – How do I do this?
Follow this link and answer the questions accurately https://www.gov.uk/topic/business-tax/ir35
Can I make myself Outside IR35?
After 6 April 2020 it is the responsibility of the company that hires you to make the decision, not you or ourselves. However, we are looking at possible ways of changing working arrangements to assist with this
Can I get a copy of the completed CEST report undertaken by the Client?
We will request this on your behalf but many clients do not share copies of this
How will being Inside IR35 affect my pay?
This will mean Tax & NI will be deducted at source from the Net amount on your invoice
Will I get the same benefits as a permanent employee?
You will not be a permanent employee, therefore, this is not applicable
Will my rate be increased to accommodate the deductions?
As a contractor, your pay rate already includes Employers NI and holiday entitlements
What are my payment options?
1. You will be able to continue as a Ltd Co/PSC, but, as the agent, we will deduct all relevant Tax & NI and pay that over to HMRC
2. You can opt to be employed through an Umbrella company and they will deduct all relevant Tax and NI and pay that over to HMRC
3. We can take you on through a direct contract with Envisage Recruitment Limited and deduct all relevant Tax and NI and pay that to HMRC
Does this also mean that I work for the end client, rather than through the Envisage Recruitment agency?
Will contractors be working for Envisage directly, or will you set up an umbrella company for contractors?
We will have the option available for you to work through Envisage Recruitment Limited. There will be a seperate option for you to work through an Umbrella company if you wish to do so. We have a PSL (Prefered Supplier List) of Umbrella Companies that we can share with you.
Will Envisage Recruitment be setting up a PAYE system if I don’t want register with an Umbrella Company?
We have a PAYE system already in place
Will I receive benefits such as sickness pay, holiday pay, company pension?
No, your status is a PAYE contractor, not an employee
Post April 2020 will there still be the need to work via a Limited Company or will I need to be paid in person via a Perm / Temp (PAYE) arrangement administered by Envisage or via an Umbrella company?
You can continue to use your PSC and we will make the net payment to them.
When will the new IR35 legislation take place?
All payments made on or after 6 April 2020 originally but this is now delayed to April 2021. We will advise as soon as we have a date.
When can we expect to see a new contract?
We are waiting for the final version of the legislation before we issue this. The timing should become clearer once parliament is sitting again and a date agreed
How will the deductions be calculated?
Via a payroll system using approved HMRC rates and allowances
Will the deductions be made before I receive the payments?
Yes, Envisage Recruitment (or your Umbrella Company) will deduct the tax and NI and pay this across to HMRC on your behalf
The IR35 issue has been covered by my initial contract, will this status change?
Yes, the status will have to change as the client now makes the determination rather than your PSC
If you have a question that has not been answered above then please do not hesitate to contact us on IR35@envisage-recruit.com and we will be happy to help