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IR35: Have You Considered Whether The New Regulations Apply To Your Business?

If you employ contractors then you will almost certainly have heard of IR35, or as it used to be known, off-payroll working rules.

IR35 is designed to shape the legislation which determines whether or not a contractor who operates through a limited company or personal service company will be designated an employee of your organisation for tax purposes. 

Michelle Tyson director of Tyson Wilson Recruitment and Tyson Wilson Temps said it’s important for all businesses to consider whether or not the new rules which came into effect on 6th April apply to them.

She added: “From the 6th of April the way the government approaches IR35 changed and so it is essential that contractors and employers both seek to understand how IR35 and the changes may impact upon their relationship.”

So what is changing?

Michelle said: “Previously, when it came to private sector companies, the burden has been on the contractor or employee to determine the status of their own employment arrangement for each individual contract. 

“This means that before the change in IR35 rules, it was up to an individual contractor to declare their contract as falling within IR35 and therefore pay the appropriate tax and national insurance contributions associated. 

“However, the change in the rules means that from 6th April 2021, it is up to the employer to establish whether or not the person is indeed an employee of the company. If it is discovered that the contractor is actually an employee of the organisation, and subsequently is not declaring their true rate of pay, and so as a result aren’t paying the correct tax and national insurance, then the employer organisation could be liable for extremely large fines.”

Michelle added that if it is found that other than the fact that the contractor is invoicing through a limited company or personal service company, they would be a permanent employee, the employer organisation would then be liable to cover all of the costs associated with employing someone such as tax or pension contributions. 

What do you need to do next?

Michelle explained: “If you believe that how you interact with your contractors may or should change as a result of IR35, it’s important to engage with a number of next steps. 

“Firstly, it is important to determine if you are a small, medium or large organisation by HMRC’s standards, this is because the new IR35 rules will not actually apply to small businesses.”

Michelle says that once businesses establish that they’re a medium or large business, there are a number of things they should consider doing next:

  • Identify and review your current relationships with contractors and consultants.
  • Ensure that the terms under which you engage with contractors and consultants are clear and that they fairly and accurately reflect the relationship between you both.
  • If you believe that any or all of them may be indeed employees rather than contractors for IR35 purposes, you should consider changing their employment status to reflect this. You may want to explore the possibility or zero-hour contracts or casual working agreements. 

“Understanding and addressing IR35 compliance within your organisation is both important and necessary if you are someone who regularly engages with contractors or personal service companies” said Michelle.

“This will ensure that you are tax compliant, will avoid any hefty fines as a result of non-compliance with IR35 and you won’t need to take on the commitment of adding someone to your payroll permanently and full-time.”

If you want more information which can help you better understand the key components of IR35, its impact on how you do business and of course how the changes in particular might impact you can download the Tyson Wilson free guide IR35 New Rules: Here’s What You Need To Know here >> https://tysonwilsonrecruitment.co.uk/free-guide-ir35 

Alternatively contact Michelle Tyson at Tyson Wilson Recruitment on 07860636486 or info@tysonwilsonrecruitment.co.uk 

Business

ASOS to Create Over 180 Jobs in Northern Ireland with new Tech Hub

Economy Minister Gordon Lyons today announced that ASOS, one of the world’s leading online fashion retailers, is to invest £14million in a new Tech Hub in Belfast and create 184 new jobs over the next three years.

Welcoming ASOS to Northern Ireland, Gordon Lyons said: “Today’s announcement by ASOS is a clear vote of confidence for Northern Ireland and our strong appeal as an investment location. The development of the new Belfast Tech Hub and the creation of over 180 jobs represents a significant investment in Northern Ireland by the company. In return, our talent base will provide ASOS with the high quality engineering resources it needs to deliver its international growth plans.

“Once in place, the new jobs will contribute almost £6.5million in additional annual salaries to the local economy. Of the new roles, 130 will participate in my Department’s pre-employment Assured Skills training programme which will offer the company a pipeline of skilled people over the next three years.”

The Minister added: “The first Assured Skills Academy with ASOS, focusing on Data Engineering and being delivered by South Eastern Regional College, is open for applications now – I urge anyone who is interested and eligible to apply for this exciting opportunity.”

Speaking about the company’s decision to invest in Northern Ireland, Nick Beighton, CEO, ASOS, said: “As a rapidly growing business at the forefront of online retailing, we’re continually investing in our technology capabilities. Our new hub will provide us with cutting-edge tech expertise to support future growth. Belfast has a wealth of tech talent and we’re excited to be establishing a permanent base in such a vibrant city.”

The new Belfast hub will be operational in early 2022, with 52 dedicated roles in the first year, growing to 184 by 2024, with recruitment already under way. Recruiting across a range of levels and job functions, including engineering and data science, the creation of the new hub in Belfast is part of the wider strategic plans for ASOS’ tech team, which will enable the team to support the continued growth and expansion of ASOS.

Cliff Cohen, Chief Technology Officer, ASOS, said: “ASOS is a fast-growing business and constantly looking to innovate through our technology. As we continue to scale our investment in technology, we are looking to hire talent across engineering roles into our new Tech Hub, and help foster talent in Northern Ireland by supporting its growing reputation as a centre for tech excellence.”

To help secure this project, Invest Northern Ireland has been working with ASOS since 2017, showcasing all that Northern Ireland has to offer. The agency has offered almost £1.2million of support towards the new software engineering roles and the Department for the Economy is funding pre-employment Assured Skills Academy training to the value of almost £1million over three years.

Kevin Holland, Invest NI’s CEO said: “I’m delighted to welcome ASOS to Northern Ireland. Securing this project is yet another tremendous endorsement of our compelling value proposition which includes our highly educated population, underpinned by some of the best educational facilities in the UK. The new roles will offer a range of opportunities for software engineers and analysts, development opportunities for those in the early stages of their tech careers and will provide exciting pathways for people to join Northern Ireland’s digital workforce. We very much look forward to supporting ASOS to grow in Northern Ireland.”

Applications for the ASOS Data Engineering Assured Skills Academy are open until 5.00pm on Friday 22 October 2021. Training will commence for successful applicants on Monday 10 January 2022.

Experience is not required but applicants must be at least 18 years of age and eligible to work in the UK.

More information and details on how to apply are available at http://www.nidirect.gov.uk/assured-skills

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Business

NI Engineering Company, PAC Group, Receive Queen’s Award for Enterprise for Innovation

Belfast-based electrical and mechanical engineering company, PAC Group, has received royal recognition for its innovative carbon fibre preforming technology. 

The Queen’s Awards for Enterprise are the most prestigious business awards in the UK, with winners personally approved by her Majesty the Queen. The Group were the only company from Northern Ireland to receive the award for the Innovation category in 2021, and were the first Innovation category winner from the province for three years.

The Lord Lieutenant of Belfast, Mrs Fionnuala Jay O’Boyle, presented the company with the award. She said: “Northern Ireland has a rich and vibrant history of enterprise and innovation. Famous historically for linen and shipbuilding, today it is companies such as PAC Group that proudly carry the innovation torch. This company’s commitment to research and development, and to future-proofing its technology, will ensure its longevity and continued success.”

“The Queen’s Awards for Enterprise are the most prestigious and rigorous business awards in the UK, with international regard and recognition. Invariably, it is seen as a highly significant achievement and landmark in any company’s history.”

Founded in 2018, the company has enjoyed a remarkable growth journey, now employing over 40 people at its headquarters in Dargan Crescent, Belfast. 

Holding 42 patents on the hardware and software, the company’s Hot Drape Formers and Preforming machines have been purchased by globally leading aerospace and automotive companies such as Spirit AeroSystems and McLaren Automotive.

PAC Group’s Business Development Director, Darren Leslie, said: “We are absolutely thrilled to receive a Queen’s Award for Enterprise in Innovation. It is a fantastic endorsement for our company to be recognised as world-class, and it is a welcome recognition of our team’s capabilities and hard work.”

PAC Group’s Technical Director, Gavin Rankin, added: “Innovation really is the lifeblood of PAC Group, and this award recognises just how innovative our carbon composite preforming technology is, which brings significant benefits to industries seeking to lightweight their structures to reduce carbon emissions and tackle climate change.”

The Lord Lieutenant of Belfast, Mrs Fionnuala Jay O’Boyle, paid tribute to “the people who are the heart of, and make up, PAC Group”.

She added: “This award is about your joint success, your belief in the spirit of enterprise and entrepreneurship, and your contribution to creating a more stable, sustainable, and prosperous economy for Northern Ireland.”

“PAC Group is a Belfast company and a Northern Ireland success story. The Queen’s Award for Enterprise is indeed a milestone, but it is also a signpost to future success and even greater achievement.”

For more information on PAC Group, go to pacgroup.co.uk

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