IR35 and How We Can Help You

IR35 is a tax legislation designed by the HMRC to combat workers from fraudulently claiming to be a contractor for tax benefits, in other sense pay less tax. The main aim of the IR35 is to target individuals who work through their own limited companies, while still performing the same work under the same conditions as normal employees. The HMRC class them as “disguised employees”. The IR35 legislation is in place to ensure that these deemed employees are taxed correctly.

If a contractor is caught by IR35, they would lose the tax benefits of working via limited companies and will have to pay a fine and tax for previous months as well. This is the main reason why contractors should work through an Umbrella Company instead.

From April 2020, the large and medium companies that hire contractors will be responsible for assessing their IR35 status. By working with us at PNG Professionals, as we are a Transparent Umbrella company you will not face this issue as:

  • You will be taxed as an employee where you will have to pay income tax and National Insurance contributions on your income.
  • We provide tax surety to all parties that no tax avoidance is taking place; explicitly or unintentionally. We also enable participants (with appropriate data and privacy permissions) to view taxes as they are paid, in real time.
  • We use an overarching employment contract, where individuals are never categorized as disguised or deemed employees of the client.
  • We handle all your paperwork for you making your life easier and giving you time to focus on your work.
Therefore, if you are worried about the IR35 legislation, just come join us and we will help you!