IR35 is the name given to a tax legislation that is aimed at identifying individuals who are fraudulently claiming to be contractors for tax benefits.   The IR35 legislation specifically challenges those people who supply their services to clients via their own limited company. 

IR35 makes sure that workers, who would have been an employee if they were providing their services directly to the client, pay broadly the same tax and National Insurance contributions as employees.

IR35 applies if a worker provides their services to a client through an intermediary, but would be classed as an employee if they were contracted directly.

Before 6th April 2020 – If you are a worker and your client is in the public sector, it’s their responsibility to decide your employment status.  You should be told of their decision.  If you are a worker and your client is in the private sector, it’s your intermediary’s responsibility to decide your own employment status for each contract. 

From 6th April 2020 – All public sector authorities, medium and large sized private sector clients will be responsible for deciding if the IR35 rules apply.  If a worker provides services to a small client in the private sector, the worker’s intermediary will remain responsible for deciding the worker’s employment status and if the IR35 rules apply. 

We take your client billings and subtract our commission, employers NI and an Apprenticeship Levy.  This gives your gross salary.

This is then subject to standard employee tax and NI.  If you pay a Student Loan, or have chosen to pay into a pension this is taken 'at source' - meaning you will not pay Tax or NI on these amounts.

No, it's highly unlikely.  Your salary is proportional to the days you work for us in the month.  So you are likely to see fluctuations in your monthly take home.  We give examples of this on your financial illustration.

Good question - this is usual due to one or more of the following reasons:

Of course.  We know you are more than capable of managing your finances, and have a preference on your pension investments.  So, under the AAUmbrella.01 model we will pay direct to your existing pension.

Our employment contract gives you three months between assignment.  As long as you are trying to find a new assignment you will remain an employee of AAUmbrella.UK.  After three months we reserve the right to terminate your contract.

No.  You pay only when on an assignment.

Yes, Professional Indemnity, Public & Products Liability insurance is part our your employment.

This depends on whether the assignment is seen as with or without SDC.  Most assignments are with SDC so the majority of expenses would need to be claimed as a personal tax submission.  Further details on this can be discussed when providing your financial illustration.

These, where billed are paid as salary and therefore subject to Tax and NI.  This can then be reclaimed with a personal tax submission.