Insights

As part of their work with Health Trust Europe (HTE), Neuven are leading the way in ensuring all suppliers remain compliant as part of this robust national legislation.

IR35 tax legislation came into effect in April 2017 in order to combat and prevent tax avoidance by workers supplying their services to any public-sector bodies via an intermediary, such as a Limited Company, but who would otherwise be an employee if that intermediary was not there. Her Majesty’s Revenue and Customs (HMRC) are calling these workers ‘disguised employees’ and are particularly relevant when it comes to temporary workers and bank staff.

Under the legislation, irrespective of whether candidates are paid on a PAYE basis, or via an external payroll service (such as an Umbrella company) a supplier must provide the relevant public sector body with evidence that thorough due diligence is routinely undertaken to ensure compliance. This means that all suppliers to public sector bodies, like the HTE, are becoming the subject of more and more rigorous auditing to ensure their compliance to the legislation is governed robustly. As part of their work with HTE, Neuven are leading the way in compliance and auditing of agencies attached to HTE frameworks.

This work comes ahead of the new Criminal Finance Act, coming into force at the end of September 2018. Under this new act, employers found to be in breach of the regulations could face a custodial sentence for a breach of the rules.

The question is, are you an IR35 compliant business and if not, what are you doing about it?