IR35 Questions and Answers:

Why have I been deemed Inside IR35?

As the end client, JLR have run the CEST tool on your role and deemed you Inside IR35

I have run CEST tool and don’t agree with JLR’s decision, how can I appeal this decision?

JLR has an appeal process to follow, we will support you with this.  You will need to collate all the relevant information to back up your appeal

I have not run CEST tool myself – How do I do this? 

Follow this link and answer the questions accurately https://www.gov.uk/topic/business-tax/ir35

Can I make myself Outside IR35?

After 6 April 2020 it is the responsibility of the company that hires you to make the decision, not you or ourselves.  However, we are looking at possible ways of changing working arrangements to assist with this

Can I get a copy of the completed CEST report undertaken by JLR?

We are actively working with JLR to obtain these

How will being Inside IR35 affect my pay?

This will mean Tax & NI will be deducted at source from the Net amount on your invoice

Will I get the same benefits as a permanent employee?

You will not be a permanent employee, therefore, this is not applicable

Will my rate be increased to accommodate the deductions?

As a contractor, your pay rate already includes Employers NI and holiday entitlements

What are my payment options?

You will be able to continue as a Ltd Co/PSC, but, as the agent, we will deduct all relevant Tax & NI and pay that over to HMRC

Does this also mean that I work for JLR, rather than through the Envisage Recruitment agency?

No, you are still able to act as a Ltd Co/PSC

Will contractors be working for Envisage directly, or will you set up an umbrella company for JLR contractors?

Neither, we continue to act as your agency, the only difference is that we have to deduct PAYE & NI at source 

Will Envisage Recruitment be setting up a PAYE system if I don’t want register with an Umbrella Company?

We have a PAYE system already in place

Will I receive benefits such as sickness pay, holiday pay, company pension?

No, your status is a PAYE contractor, not an employee 

Post April 2020 will there still be the need to work via a Limited Company or will I need to be paid in person via a Perm / Temp (PAYE) arrangement administered by Envisage or via an Umbrella company?

You can continue to use your PSC and we will make the net payment to them

When will the switch to PAYE take place?

All payments made on or after 6 April 2020

When can we expect to see a new contract?

We are waiting for the final version of the legislation before we issue this.  The timing should become clearer once parliament is sitting again  

How will the deductions be calculated?

Via a payroll system using approved HMRC rates and allowances

Will the deductions be made before I receive the payments?

Yes, Envisage Recruitment (or your Umbrella Company) will deduct the tax and NI and pay this across to HMRC on your behalf

The IR35 issue has been covered by my initial contract, will this status change?

Yes, the status will have to change as the client now makes the determination rather than your PSC