What do the IR35 changes mean for our Varios?

Posted 05 March 2020

• Responsibility for determining how an assignment should be taxed will move from the Vario’s PSC to the end client (which might be either Pinsent Masons or an external Pinsent Masons’ client).
• The end client will be responsible for providing a status determination statement (‘SDS’) confirming their IR35 assessment.
• For assignments falling inside IR35, liability for income tax and national insurance contributions, payable by operation of the IR35 rules, moves away from the Vario’s PSC, and Vario/Pinsent Masons as ‘fee-payer’ will have an obligation under the new legislation to make the relevant PAYE deductions.
• For assignments falling outside IR35, the Vario’s PSC will remain responsible for accounting for tax and national insurance contributions as appropriate.
• There will be a dispute process in place for a Vario to challenge an IR35 assessment – this is a requirement of the new legislation.

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