It’s a great question isn’t it.
It is certainly a saying that I (Gary Kingdom) have had to deal with countless times since joining the team at JR a couple months ago.
I kept hearing this jargon about “Aisle 35”…. And couldn’t help but think, “What on earth does that mean and why is it such a big deal?” 😕
It is not (I have recently discovered) someone discussing where to get a product from the supermarket, but in fact a piece of anti-tax-avoidance legislation! 💡
So I stopped using it as an excuse to visit the chocolate aisle and spoke to our experienced team to try and understand this legislation a bit more and the impact it has on our clients and candidates.
IR35 was introduced to UK law in the year 2000, it was amended and rolled out in its current form last year. IR35 rules are designed to figure out whether or not contractors are genuinely self-employed or ‘disguising’ themselves from an actual employee. In basic terms IR35 combats off-payroll working resulting in tax avoidance. 🔍
Who does IR35 affect?
Simply put, it affects businesses and how they pay contractors. In the veterinary industry (the industry the JR team know and love) these are our Locum workers who are a vital part of a vet practice that need on-going support to fill in rota gaps.
When does IR35 apply?
Personal Service – If you have to do the work yourself and a substitute is unable to do the work for you.
Control – If the tasks set are outside your personal control i.e. there is no freedom to perform the task how/when/where you want.
Mutual Obligation – If a company is providing the work and you have to do it.
There are other factors that can come into play for example; do you work for several clients, do you provide your own equipment, do you have financial risk etc.
What is JR’s advice on IR35? Our 6 simple steps: 🔆
Can you legitimately provide a substitution – this means if you are unable to work, can you provide someone with the same skill set to step in on your behalf.
Do you have legitimate business expenses that you need to pay for, to enable you to do your job?
Consider how you will introduce yourself to clients whilst working as a contractor?
Ensure you can work for multiple organisations and are not tied down to just one.
Ensure your skill set/qualifications determine how the tasks are done.
Certain clients are exempt from IR35 so the onus will fall back to the contractor/Locum to determine if the role falls inside or outside IR35.
All the factors above will help determine if you are genuinely self-employed or disguising yourself as an employee. ✅
👉If you would like any further advice please contact Janks (the expert👩🎓) on:
☎01392719887
