As a self-employed person, you want to make sure that you are on the correct side of HMRC so that you are not hit with penalties and interest on any outstanding tax or National Insurance liabilities that could be incurred if you are found to meet the conditions of IR35 or MSC.
In a nutshell, IR35 legislation looks at the underlying relationship and contract that you have with the end client to determine whether it should apply to you. You and your intermediary need to conduct the assessment of the relationship for each and every one of your assignments. If IR35 can be applied to your contractual relationships with your clients, you will be liable for any underpaid tax and National Insurance.
Find out more about IR35, click here
Managed Service Company (MSC)
Since this legislation was introduced in Budget 2007 and extended in 2008, if you are found to be a person working through a MSC, all your earnings could be subject to income tax and Class 1 National Insurance as if you were employed and paid using PAYE. Any outstanding tax and National Insurance liabilities could also incur penalties and interest. As well as this, even if the MSC is wound up, HMRC has the ability to transfer irrecoverable debts to third-parties involved.
Find out more about MSC Legislation, click here
Here is how Brolii can help
When you are a contractor working under the Brolii umbrella, you can forget about IR35 and MSC legislation. You will be placed under a full contract of employment and paid via PAYE (minus your allowable expenses so you get to take home more of your earnings) so all of your tax and National Insurance liabilities are completely handled by us.
As a full employee you get the benefits of being an employee including:
- Statutory Maternity Pay
- Paternity Pay
- Adoption Pay
- Sick Pay
And that’s not the end of it. You will also be covered by our comprehensive insurance package which includes employers liability, public liability and professional indemnity insurance so you are covered for every eventuality.
If Brolii sounds like a good solution for you, contact us here