Multi-award-winning accountancy firm, Salhan Accountants, are warning professional drivers that they may be affected by the upcoming IR35 rule changes, which will come into force in less than a year.
The new IR35 rules will for the first time affect those working under contract in the private sector and may mean that those currently classed as self-employed may be reclassified as an employee.
Originally due to be introduced in April this year, the slight reprieve will be welcome news for some, but Salhan Accountants, which has offices in Birmingham and Droitwich, believes that many drivers may still be unaware of the rules and how they will affect them.
Dr Anjulika Salhan, a Director at Salhan Accountants, said that were a person was identified as an employee rather than a self-employed contractor they could face a higher tax bill and be forced to pay national insurance contributions, while also potentially losing out on some important tax reliefs.
“The Government has assured workers time and time again that these new rules will not affect those who are genuinely self-employed,” explained Anjulika.
“However, while many people will class themselves as self-employed, they may find out that under their contracts their employer is required to reclassify them under the new rules to prevent so-called off-payroll working.”
She said that under IR35 it is the responsibility of the employer for determining if the rules apply and for making the correct tax and national insurance deductions and as such many will favour applying the rules to avoid penalty.
“We have seen in the public sector, where IR35 already applies, that many employers are choosing IR35 as their default position and bringing previously self-employed contractors on to the payroll,” Anjulika added.
“This can have a significant impact on an individual’s tax liabilities and their requirements to report their earnings, which it is why it is important that professional drivers seek advice at the earliest opportunity to avoid being caught out.”
To find out how Salhan Accountants can assist you with your tax affairs, please visit www.salhanaccountants.co.uk