By now, you’ve probably heard about IR35 legislation which is due to come into effect in April 2020. Many of our clients are seeking clarification about how it might affect their businesses if they are using contract or temporary vehicle technicians and MOT testers.
We know how important our contractors are to keeping your business running and that you may not have the time to spend researching the new legislation. Below outlines how IR35 will affect your use of our contractors.
What is IR35?
IR35 (often known as ‘the intermediaries’ legislation’), is designed to ensure that any individuals who work through their own company pay employment taxes in a similar way to employees. This will come into effect next year for the private sector and will see HMRC begin to identify any ‘disguised employees’ working as limited businesses.
IR35 does not have to apply to the contractors we supply to your business
IR35 affects limited businesses only and half of our contractor workforce work via their own limited business (the other half are paid via PAYE and wouldn't be eligible anyway), however, ALL Autotech Recruit contractors are subject to a CEST Assessment (Check Employment Status for Tax) upon registration and it’s been determined that Autotech Recruit’s MOT testers and vehicle technicians fall outside of IR35 and are therefore NOT affected by IR35. This being said, the decision to determine the status of our Limited contractors does not lie with us, it is the responsibility of you, the clients and we would encourage you to do the correct assessment and determine our contractors as outside IR35, as we do.
You can request HMRC CEST Assessment result that have been generated by Autotech Recruit on behalf of our contract workforce by emailing IR35queries@autotechrecruit.co.uk.
The result clearly states that the intermediaries legislation (IR35) does not apply to the engagement of contractors who are working as MOT testers and vehicle technicians. If you have contractors working in your business who are not supplied by us, we advise you to seek clarification from them regarding their status.
If you have any questions on this subject, please contact IR35queries@autotechrecruit.co.uk or call Faye Drage, HR and Operations Manager on 01234 240503.