IR35 in the private sector - do you supply sub-contractors to your customers?
There is a consultation in progress about rolling out the IR35 public sector body changes to the private sector.
Under the public sector body changes, an agency, perhaps such as your company, who supplies sub-contractors, has to make deductions of PAYE & NI from its sub-contractor client’s invoices before paying them the net pay, if they fall under IR35. Crucially it is the public sector body (the end customer) that decides whether they fall under IR35.
I imagine that at the moment you may not be supplying bodies to public sector bodies and this may not affect you.
However if the roll out happens as expected to the private sector, you will need to ascertain from your customer whether or not they believe each of your sub-contractors fall under IR35. There may be no right of appeal against this decision made by your customer. It is your responsibility to find this out from your customer and if the sub-contractor DOES fall under IR35 you need to be in a position to operate the deductions for the sub-contractor before paying them. Your company is exposed if you do this incorrectly, not the sub-contractor.
Please be aware of this as you plan for the future of your business. Of course we can help if you need us when the time comes.