When faced with IR35 as a small business the impact can be daunting. However at MHA Larking Gowen we have specialists available in all areas of the business to assist you as needed.

We have our Tax Specialists who can assist in the following areas amongst many more:

• HMRC enquiries
• Contract reviews and appeals against Status determinations
• Financial modelling
• Deemed payment calculations
• Personal tax returns & other tax calculations
• Deciding on whether to keep your company, and what to do if you decide not to.
• Dealing with a mixture of IR35 and non IR35 contracts.

We have a team of personal tax specialists who have experience of dealing with clients with a mixture of taxed IR35 and other income. They can assist with completion of personal tax returns as well as assisting in income planning which is particularly important where a contractor is moving from having control over their income to receiving a P60 from their end client.

Where a company has a mixture of IR35 and non IR35 contracts, it is important to keep these records separate so that the taxed income can be readily identified by HMRC and we have an outsourcing team that can assist in this regard. 

Likewise, our accounting teams are able to ensure the accounts, and corporation tax returns accurately reflect the position and that no income is taxed twice.

Draft legislation to be included in the Finance Bill 2019 is set to reform the intermediaries legislation, with effect from April 2021.

We have Specialists who can assist in the following areas amongst many more:

• Design policies and procedures to ensure the new compliance requirements are met
• Assistance with contract reviews and appeals against Status determination
• Financial modelling
• Payroll processing

These reforms apply where workers provide their services via intermediaries (typically their own company) to 'medium' and' large-sized' businesses in the private sector.        

To a large extent these changes mirror those already made in the public sector with some added compliance measures applying across both sectors

From April 2021 if IR35 is found to apply, the large/medium business (or if there’s a labour chain, whoever else pays the intermediary) are required to account for PAYE and NIC on all amounts payable to the worker either directly or via their intermediary.

Medium & large businesses engaging workers in this way will need to undertake status determinations, have processes for communicating these to workers and intermediaries, for dealing with appeals as well as payroll systems that can identify and address the need to operate PAYE/NIC on this extra class of deemed employees.

HMRC IR35 investigations can be complicated and time consuming. Our experienced specialists can offer practical help in getting the dispute concluded.  

We also offer a Tax Fee Protection Service which covers the cost of us defending you against an HMRC enquiry. More details of this service can be found here.

Should you determine, either on your own or as the result of seeking our advice, that as a result of the April 2021 IR35 reforms, that you no longer need your company and you may want to wind up the company rather than leave it dormant.

Depending on the value of the company, there may be multiple ways to achieve this.

We have a specialist insolvency and recovery team who can advise on most appropriate and tax efficient method for you.

Read more about our insolvency and recovery services here.