Employment lawyer issues IR35 alert to Worcestershire firms
A leading Worcestershire employment lawyer has warned the county’s private sector
businesses to be fully prepared ahead of sweeping changes to rules on using
The alert has been issued by Sally Morris, partner and head of employment at law
firm mfg Solicitors, ahead of the so-called IR35 changes which come into force in
April which will see the responsibility for determining whether a contractor is “inside”
or “outside” the business falling on an employer.
IR35 rules currently apply to public sector staff and were introduced by HMRC in
2000 to crack down on people avoiding national insurance and income tax by being
employed through personal service companies. The rules are now being expanded to
the private sector’s medium and large-sized businesses to make sure contractors
pay the same tax as employees where required.
Ms Morris said: “I am concerned that many businesses here in Worcestershire are
unaware of the seriousness and complexity of the new rules which will be ushered in
“In many ways the rules are an unfair burden on businesses who rely on using
specialist contractors as from April a number of liabilities pass over to them. This
includes them having to be responsible for issues such as National Insurance
contributions and employment taxes.
“It’s a weight many don’t need but must understand if they are to stay on the right
side of the rules when they engage contractors. Those who don’t risk impact on their
finances and their reputation.”
Ms Morris added that small businesses outside of the public sector should be exempt
from the new rules but have to meet guidelines and conditions set out by HMRC to
The new tax cost could be as much as £1.3 billion in 2023/24.
Readers looking for advice can contact Ms Morris, who is offering a free 15-minute
initial consultation on individual circumstances, through
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