TARPON, a leading UK umbrella company, comment on the Government’s recent unveiling of the first change to the intermediaries legislation contained within the draft Finance Bill 2013. The change is designed to improve and strengthen the legislation. It is achieved by extending it to limited company freelancers who are on assignments where they are considered ‘office holders’ of their clients.
This results in each contractor loosing their exemption from IR35, helping to eliminate those wishing to hide their employment status, and therefore cracking down on personal service companies.
Subsection 49 of part 2 of the Income Tax and Pensions Act, otherwise known as IR35, takes into account “the underlying nature of the relationship between the worker and the engager”. It is set to extend the chapter to include office holders. Currently, ‘office holders’ are not to considered employees, and therefore do not fall within this legislation.
Below is a detailed excerpt from the document:
“The extension applies both where the worker is named as an office holder of the client but paid through an intermediary, and where the intermediary (third party) is named as the office holder of the client.
“It applies in each case where the worker would be considered as an office holder of the client, if the services were provided directly under a contract between the worker and the client.”
A spokesperson from Tarpon commented on the changes:
“It’s vital to understand the change that is being implemented. For contractors who are not familiar with the legislation there is no need to worry since this is the only change being made to the IR35, which will not affect any legitimate contractors within the United Kingdom.
“Tarpon differ from personal service companies and other ‘intermediaries’ because contractors become an employee of the company.
“We are also unique because we provide contractors full compliance with all tax legislation, whilst offering a genuine employment solution, that helps create peace of mind for all our employees, especially when new legislation is announced.”
The new changes that feature within the draft Finance Bill 2013 will come into force in April 2013.
Tarpon are an umbrella company specialising in contractor tax efficiency, enabling contractors to maximise their income and streamline their admin. Tarpon also provide contractors and agencies with professional advice surrounding potential employment law and tax challenges, including IR35 and AWR.
Discover what your take home pay will be with Tarpon by using our online umbrella company calculator. Or speak to one of our experts, by calling 0800 434 6402.
Tarpon UK Ltd,
Wigmore Park Centre,
Tel: 0800 434 6402
MEDIA RELEASE posted by QueryClick. You too can post media releases on www.allmediascotland.com. For more information, email here.