Bedouin Welcomes HMRC's New Guidance on IR35 and Offers ‘The IR35 Test’ Infographic

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HM Revenue & Customs (HMRC) has just posted a series of tests and scenarios designed to help contractors determine whether or not they fall foul of the Intermediaries Legislation (IR35); Bedouin explains how this will affect many freelancers and contractors in the UK.

IR35 Test Infographic

IR35 Test Infographic

While the tests have attracted much criticism from the IR35 Forum (members include APSCo, the FSB, FCSA, PCG and the REC) we welcome the guidance because many contractors have been oblivious to how exposed they were under the regulations and how expensive

Bedouin, a company dedicated to the provision of highly tax-efficient remuneration services for consultants, contractors, interims and freelancers, highlights the HM Revenue & Customs’ Business Entity Tests and unveils a new infographic and online IR35 test to help contractors and freelancers gain a better understanding on the changes to IR35.

IR35 is tax and National Insurance contributions (NIC) legislation which prevents people who use intermediaries from being better off than they would have been if their end clients had employed them directly. HMRC introduced the tests along with guidance to help contractors assess their compliance with the legislation. The guidance document explains which “risk band” a contractor is in (low, medium or high) and also offers example scenarios to help illustrate when and why IR35 applies.

“Bedouin’s contractors are not affected by IR35,” says Nik Heath, Director of Bedouin. “Our contractors are employed by Bedouin and therefore sit outside of the Disguised Employment Legislation; they cannot fall foul of the rules affecting the self-employed and Ltd Companies.” Nik added, “While the tests have attracted much criticism from the IR35 Forum (members include APSCo, the FSB, FCSA, PCG and the REC) we welcome the guidance because many contractors have been oblivious to how exposed they were under the regulations and how expensive falling foul of IR35 can be for them.”

In addition to being unaffected by IR35, other benefits of Bedouin include:

  •     Not exposed to MSC – contractors are paid through one single PAYE structure and, therefore, cannot fall foul of the transfer of debt provisions within MSC legislation.
  •     AWR Exempt – contractors are engaged as persons working in the capacity of a “professional” and are, therefore, exempt from the rules within it.
  •     EL, PL and PI Insurances included – contractors are covered in full at no extra cost
  •     HMRC Compliant– PAYE and NI deducted at source and paid directly to HMRC
  •     Same day Payments – FPS service utilised as standard.

To view Bedouin’s IR35 Test infographic, visit: http://www.bedouingroup.com/ir35-test/

About Bedouin
Bedouin is dedicated to the provision of tax-efficient remuneration services for consultants, contractors, interims and freelancers. The company has always been first to market with innovative, best of breed solutions and is seen as the market leading umbrella alternative because of their zero-risk legislative cushion for Recruitment Companies.

Bedouin offers its contractors a simple but highly effective, HMRC-compliant alternative to the problems and exposure associated with managing a Ltd Company or using a standard Umbrella. The company offers contractors exceptional support and service that is second to none in the contracting sector. For more information, visit http://www.bedouingroup.com.

Contact:
Simon Powell
0845 519 2888

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Simon Powell

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