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WHEN ARE ANY PAYMENTS FOR PAYE & NIC DUE?

Payments date is 19th April by which the company needs have paid the amounts due on the salary received between 6/04/00 - 5/04/01

WHAT TO DO IF NOT TO SURE ABOUT YOUR CONTRACT STATUS?

Determine the payment received between 6/04/00 - 5/04/01. Depending on what the contracts status is this will depend on what payments should be made by 19/04/01. If your contract comes under IR35 then payments are seen as salary and therefore PAYE & NIC should be checked and paid on these sums after deduction expenses.

WHAT IF YOU ARE NOT ACCURATE ABOUT PAYMENT?

If you are unable to make an accurate assessment by 19/04/2001 of the PAYE & NIC due then the company still needs to make a payment. On your P35 you should clearly inform the I.R that a correct assessment will be made as soon as possible. Keep in mind that accurate payment should be made by the time the P35 is due and Interest will be charged on all sums not received by 19th April and until correct payment is made.

WHAT IF PAYMENT IS LATE?

If a supplementary P35 is submitted by 31st January of the following year (i.e. for the tax year end 5th April 2001 this needs to be sent by 31st January 2002) with the correct payments then the Inland Revenue will not charge interest for late submissions. However interest will occur on sums which were due on 19th April until they are paid.

WHAT IS IR35?

The IR35 was made law and reveled in the budget of 1999. IR35 determines whether a individual, who works through a Personal Service Company or certain types of partnership, is taxable under the IR35 system depends initially on whether the I.R sees them to be employed or self-employed. The decision is based on several documents produced by the Inland Revenue.
IR56 :- A simple test to find out whether you are employed or self-employed. This test has been used for many years and has merely been extended to incorporate Ltd Co and the relevant partnership arrangements.
IR175 'Supplying Services through a Limited Company or Partnership. This document.

WHO DOES IT AFFECT.

IR35 has been the main topic for contractors for the past year, IR35 affect all contractors who do not meet the criteria of 'self employment', of the Inland Revenue's, IR35 was but into action on the 19th April 2001
If you do not meet the criteria of self employment, of the inland revenue, then you can expect the IR35 to affect you.
To check the Inland Revenues criteria visit www.inlandrevenue.com
Who will it affect.

The IR35 is an increase in tax and N.I liability , contractors who come under the IR35 law are liable for taxation and N.I at Schedule E level.
Expenses can be claimed under Section 198. There are other expenses that can be claimed as well as the 5% of a contractor's turnover.

WHAT ABOUT EXPENSES CLAIM?
Expenses that can be claimed in addition to the 5% allowance:

Subsistence - accommodating, meals when working away
Business travel - Incurred in Business only.
Pension payments - Executive or Personal
Professional -Indemnity cover
Other Benefits - private medical insurance

Expenses that cannot be claimed in addition to the 5% allowance:

Training expenses

We would advise contractors to seek legal advice to make sure about position under the IR35.
If you are caught by IR35, you may want to change the way you work and use a new contract which is IR35 friendly.

For more info regarding IR35 click below

Link to Inland Revenue