• Paywise Consulting Limited, London, England.
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What is Paywise Consulting?

A brief history

Although this law has been in existence for over 20 years (since April 2000) it has never been truly enforced until the Public Sector 5/6 years ago and now as from April 6th 2021 will be full enforced in the Private sector.

It is named IR35 because it is a throwback from the old Inland Revenue and was first issued under publication 35

It is essentially been set up to tackle:

  • Tax Avoidance
  • Establish the true nature of employment

20

Years of Experience

126

Happy Customers

200

Industry Experts

7015

Qualified Staffs

 

Before 6th April 2021 if your worker provides services to a client through you:

  • In the Public Sector the client must decide your worker status
  • In the Private sector you must decide your worker status


From 6th April 2021 all public sector clients and medium or large sized private sector clients will be responsible for deciding your worker status.
Effectively a transfer of liability for Tax and NIC
In practice IR35 and Off Payroll legislation require HMRC to prove on a case-by-case basis that a contractor under investigation is not really a small business but rather an employee.
There are many case laws to cross reference and set up a precedent
IR35 (employment status) can change during contract and therefore a defence file should be kept with every contract engagement.

Cases in point:

October 2002: Lime IT V Justin

Ms Lisa Fernley 1 st taxpayer to win IR35 case at the special commissioners

March 2003: Synaptek vs Young

IT contractor Gordon Stuchbury losses an IR35 case at the High Court after the judge list eight factors pointing to a contract for services and five pointing towards a contract of service .

NB:

  • 1. A contract for Service = Self Employed
  • 2. A contract of service = Employed
January 2008 Dragonfly Consulting Ltd v HMRC
John Bessell a contractor and MD of Dragon fly losses as is “deemed part and parcel of the end client organisation
January 2008 Datagate Service Limited v HMRC
Datagate wins before Special Commissioners proving HMRC decisions can be overturned

February 2012: Ed Lester Scandel

The student loan company chief executive Ed Lester is exposed by the media for being a limited company interim management contractor, prompting a treasury review of Government use of ‘Off payroll workers’

March 2019: Lorraine Kelly defeats HMRC

Lorraine Kelly the TV personality defeats HMRC in IR35 tribunal

September 2019: HMRC defeat BBC presenters

BBC presenters Tim Wallace and Joanna Gosling were defeated by HMRC at their tribunal

Private Sector Off Payroll working for Intermediaries:

The Rules are and apply:

  • If a worker provides services to a client through an intermediary but would be classed as an employee if they were contracted directly
  • Make sure workers pay tax and NI at same rates as employees

1st step is to make an Employment Status Determination
From the outcome of the status rules will apply for inside IR35 or Outside IR35
Basically, you are proving whether a person is employed or self employed

What underpins the main factors for a decision in an IR35 determination are:
1 Personal Service/ Substitution – has the hiring company hired the contractor personally to deliver service?
2. Control- Does the hiring firm contract the contractor?
3. Mutuality of Obligation (moo) – is the contractor obliged to accept ongoing work offered, and is the hiring firm obliged to offer the contractor ongoing work?

In addition, you will have to consider:
  • Part and Parcel
  • Financial Risk
  • In business on your own account (IBOYOA)
  • Provision of equipment
  • Intention of the parties
The OFF-Payroll legislation leans heavily on (reasonable care)
An SDS with relevant back up will normally be deemed as reasonable care

We have compared all the solutions available and can offer the best ones for:

Why Us?

We Understand Our Customers' Needs

Let us find the best remuneration deal on the market for YOU!
  • We are completely independent Payroll consultants
  • We work on your behalf and guarantee to get you the best rates with the best fitting solution
  • All Solutions are fully compliant with all current HMRC requirements
  • All solution have been tried and tested by 1000's of our contractors for many years, to give you full peace of mind
  • We are in communication with the Solutions daily
  • With IR35 Status being ongoing we can easily change your payroll solution as and when required

We have access to the best

We have access to top QC's, accountants, solicitors and former HMRC officials with whom we can check facts, legalities and rumours and report back directly to you, the customer.

Bespoke Service

We give you a full and frank of each and every type of solution. All solutions are bespoke and aligned to YOUR needs. We regularly monitor and check all of our recommendations to make sure they are exactly what you, the customer, wants. When you're happy, we're happy.

Our Expertise

We have the experience and the knowledge to help and we have aligned ourselves with only the best solutions that are compliant and accommodate the constantly changing tax landscape. We avoid solutions that aren't compliant. We don't use loan-based solutions.

You can’t save tax…….

But you can become a more knowledgeable Tax Payer, it’s not a case of avoiding taxes, it’s a matter of calculating what you actually owe.
Our

Expertise

We have the experience and the knowledge to help and we have aligned ourselves with only the best solutions that are compliant and accommodate the constantly changing tax landscape. We avoid solutions that aren't compliant. We don't use loan-based solutions.

Find out for sure that you are on
the best Umbrella Payroll Solution for you!

Book Now: 0207 101 4953