Who determines your ir35 status and who pays employment taxes?

Many people and businesses can be liable for employment tax if they employ foreign workers in the UK without the required visa or work permit. To avoid legal issues, your business should take appropriate steps to ensure that all its employees are entitled to work in the country as per law.

If you’re an individual working independently, you will also have to comply with IR35 regulations- even though this may not technically fall within the purview of your job title. On the other hand, company directors and officers must take additional measures to ensure their organisation complies with IR35- otherwise, they could face civil penalties or criminal charges.

As part and parcel of the organisation, the employer must ensure tax payments are made on your behalf. In addition, if you work as an employee or contractor for a business, you must be registered with HMRC and make sure all taxes are paid on time. If this isn’t done following the law, penalties might be levied.

Apart from tax-related activities, it is also important that employment status is determined by the business you’re working for, not by yourself or your employing individual. Any disputes arising between yourself and your company must be settled through legal channels rather than personal disagreements. Finally, always keep accurate records to avoid any hiccups down the line during tax season.

It can be confusing and time-consuming to comply with employment tax rules. That’s where IR35 comes in. It determines who is responsible for paying taxes on employee income. If you are self-employed, you must register as the sole trader and pay Self Assessment Taxes on your profits.

However, if you are an employee, your employer needs to register with HMRC as an employer to pay taxes on your behalf. Understandably, this can get pretty tricky, so it is important to clearly understand how IR35 works for you and your boss/employer before getting caught up in any tax drama.

It can be tricky to know your status under the IR35 legislation - that’s where our team comes in. By answering a few simple questions, we can determine whether you’re self-employed or an employee and determine your tax obligations accordingly. If you’re self-employed, make sure to track and report all income and expenses using Schedule C of your Taxes return, if required.

Additionally, you’ll need to pay employment taxes, which vary depending on whether your income falls within the £10,000 salary limit or not. If you’re an employee, your employer is responsible for ensuring your status under IR35 is correct.