End users will have to decide the IR35 status of the engagement, but the recruitment agency is responsible for making correct tax deductions.
Recruitment agencies who may not have payroll in-house will have to deduct tax and NICs from all contractors who fall inside IR35, AND find the funds to pay employers NICs and the apprenticeship levy on these contractors pay.
Failure to do so could mean HUGE consequences. If correct deductions aren’t made, HMRC will seek recovery from the agency, and potentially, EXTRA PENALTIES can be added.
End clients classed as “small businesses” are exempt – but this does not apply to recruitment agencies
all you have to do is give us a call. In return, we’ll give you a free consultation on how IR35 will affect you, plus a free self-assessment and one week of free payroll when you switch to umbrella before 6th April 2020.
Get in touch with our friendly UK team today via firstname.lastname@example.org