Advice for IR35 Contractors in Leicester
IR35 is shorthand for the UK tax legislation that is designed to identify contractors and businesses which are avoiding paying the appropriate tax by working as ‘disguised’ employees or are engaging workers on a self-employed basis to ‘disguise’ their true employment status.
IR35 (short for ‘Intermediaries Legislation’) is a set of tax rules brought in by the government to crack down on contractors who are deemed to be disguising employment through the use of a limited or personal service company.
The government introduced IR35 in order to stop employees returning to a previous employer as a contractor in an effort to reduce their NI contributions and tax liabilities and disguise their employment from HMRC.
A prime example of ‘disguised employment’ is where an employee leaves their job at the end of one week and then returns to the same company at the start of the next week but as a contractor, despite doing the same job role they carried out previously.
You will be classed as ‘inside IR35’ if your contract has the same responsibilities, liabilities and risk as a permanent member of staff and you will therefore not be able to take your income as a combination of salary and dividends as you would if you were a Director of your own limited company; instead, you would be liable for the full amount of tax and National Insurance contributions as you would if you were a permanent employee.
Changes in Legislation from 1st April 2017
The government will introduce changes to IR35 legislation on 1st April 2017 which puts all IR35 contractors, and public sector contractors especially, at risk. The main change is the shifting of responsibility for assessing your IR35 in the public sector to the organisation that pays you, which in most cases will be your end client or agency.
In the event that they get their assessment wrong, your client would be liable for the back taxes owed. This has created quite a stir in the public sector as most organisations will not want this level of increased risk.
Most agencies and organisations in the public sector are simply not up-to-date with the latest changes in legislation so it is important that you act now.
Gower Accountancy Sectors
Two sets of tax legislation that are designed to combat tax avoidance by workers.
A branch of the commercial enterprise concerned with the construction of buildings, bridges, etc.
Dentists are the frontline of good oral health.
A driving instructor is a person who is hired by a new driver who is learning how to improve their skills.
A locum doctor is a doctor who covers for another doctor who is on leave.
Restaurant meals are often seen as the "healthier" of the two dining options.
A person or company that develops software applications, or creates and maintains websites.
The construction industry covers a vast array of fields.
An independent contractor often functions as a freelancer,
A person licensed to practice medicine, as a physician, surgeon, dentist, or veterinarian.
IT contracting is about delivering services – not specified results or products.
The business of selling and buying cars and other road vehicles.
A person engaged in selling and arranging transportation, accommodations, or trips for travellers.
Frequently Asked Questions
Learn How it Works!
We understand that accountancy and tax can be complicated, and you are likely to have many questions. At any time, you can book a no-obligation consultation in which we can provide answers specific to your circumstances. For more general enquiries, however, feel free to browse our FAQs!
What does “chartered” mean?
A chartered accountant is an accountant who has studied accounting to a high level and completed three to five years' work experience, earning them a professional accreditation. Once qualified, a chartered accountant can join the ACCA (Association of Chartered Certified Accountants) or another professional body.
While a regular accountant is generally capable of providing straightforward accountancy services, a chartered accountant can become a far more valuable asset to your business. Due to their in-depth expertise, chartered accountants can advise on specific business and financial matters, including corporate finance, cash-flow forecasting, forensic accounting, and advanced tax planning.
As chartered accountants in Leicester, Gower are proud to uphold the professional and ethical codes of the ACCA - and we are dedicated to using our chartered status to help Owner-Managed Businesses in as many ways as possible.
I already have an accountant, do I need to change?
Does your existing accountant offer you a pro-active, flexible service at an excellent rate? Are they easily contactable? Do they save you money, and help you to make profitable business decisions?
If so, then it sounds like you’ve got a keeper! However, if you answered no to any of the questions, or fancy exploring your options a bit, then please get in touch for a free, no-obligation consultation.
Not all accountants were created equal; some simply provide a better service, save you more money, and provide more advanced levels of business advice. If you’d like to see just how much an expert chartered accountant can benefit your Owner-Managed Business in Leicester, Gower is ready to show you.
Are you the right accountants for my business?
We understand that choosing an accountant for your business is not a small decision, and one that should not be taken lightly. You need an accountant that you can trust, who will get to know your business inside-out and will always operate in your best interests.
We’re not saying that we’re perfect for everyone - but we do have decades of experience working with Owner-Managed Businesses of all sizes, across a vast range of sectors. Once we partner up with someone, we take the time to understand their business, their needs, and their goals - and then we give it our all. This has granted us a reputation of which we are very proud.
The best way for you to see if we’re a good fit is to talk over the phone, or meet for a coffee - a free meeting, with no obligation. Let’s have a chat about how we can help your business.
I need help urgently! What can you do?
If you are experiencing an accounting emergency, we would kindly ask you not to panic. We can help!
Our Accounts Emergency corner has gotten more than a few Owner-Managed Businesses out of a tight jam. If your accounts are in a bit of a mess, or you’ve received a nasty letter from HMRC, or anything else, we’ll fast-track you and offer a quick solution.
What are the benefits of hiring an accountant?
There are many benefits to hiring a good accountant. In addition to keeping your books, managing your payroll, and keeping your accounts up to date, your accountant can actually help you to save money and boost the profitability of your business.
The main benefits of hiring a chartered accountant in Leicester include:
- Keeping you compliant - As an Owner-Managed Business, you are legally required to provide records of your accounts informatively, accurately, and consistently. There are a series of tax deadlines that must be met throughout the financial year, and if one of these is missed, it will result in a penalty.
As your trusted accountants, we can take care of everything, and thus guarantee that you remain in HMRC’s good books.
- Reducing your taxes - Knowledgeable accountants can find legitimate ways to keep your tax payouts as low as possible. Whether through government schemes, flat rate schemes, or expense claims, there are many ways of reducing the tax that most businesses don’t know about.
As tax experts, we can ensure that you never pay a penny more in tax than necessary.
- Making profitable business decisions - In order to make good business decisions, substantial knowledge of finance is often required. Without the knowledge of your business’s financial history, current state, and future forecast, your business could easily take a wrong turn.
By analysing your business’s finances and calculating logical forecasts, we can help to guide your business down the most profitable path.
Is it easy to change accountants?
If your current accountant isn’t providing the level of service you want, and you would like to move over to us, then the process couldn’t be simpler.
All it takes is just one letter from you, and then we take care of the rest. In most cases, your existing accountant cannot charge you for providing the standard handover information.
You seem to offer a lot, are your fees expensive?
We do indeed offer a wide range of accountancy services in Leicester - but our packages are tailored to match the specific needs of you and your business. We will never impose a service that you do not truly need.
Are we the cheapest accountants in Leicester? Probably not. But as far as value for money goes, we are confident that we cannot be beaten.
As with most things, the cheapest accountant is often the most expensive in the long run. Every penny that you spend with us will be applied with purpose, putting it to the best possible use - not just saving you money, but also increasing the profitability of your business.
As experienced, dedicated, highly-knowledgeable chartered accountants in Leicester, we provide a service that almost instantly repays itself in the value-added to your business.
Get In Touch!
Based on the outskirts of the city centre, Gower Accountancy is only a 5 minute walk from Leicester railway station which is easily accessible by public transport and we also provide ample parking for those who wish to visit by car.
Contact Gower Accountancy today for your Free 30 Minute Consultation to see how we can help you and your business:
0116 220 6019
0800 612 7122
250 Humberstone Road,
Leicester, LE5 0EG