Tax avoidance is a serious matter, IR35 is designed to stop contractors and clients from avoiding paying tax and national insurance.
As of April 2020, IR35 rules change for contractors who are working within the private sector for medium to large clients. As with the public sector, the client will have to look at the parameters and determine if the contractor falls inside or outside of IR35.
IR35 is a piece of legislation that enables HMRC to take additional payments from contractors who they feel should be paying income tax and national insurance based on the fact they are employees in all but name when working with certain clients.
It is relevant to both the public and private sectors where contract work is carried out, however, there are differences in how the payment is taken.
Public Sector – the contractor’s client is responsible for determining if IR35 applies to the contractor. If it does apply they will need to put the contractor onto their payroll and deduct income tax and National Insurance.
Private Sector – if it is believed that IR35 applies to the contractor then the client will have to make an extra payment to HMRC for the additional tax and National Insurance they would receive based on an equivalent employee’s wages.
HMRC take several factors into account when determining if a contractor should be within IR35, these include the following:
Control – how much control does the client have over where and when the contractor carries out work
Personal or substitute? – does the contractor carry the requested work out personally or do they send a substitute when needed
Work requests – does the contractor expect the client to provide them with work and does the contract have to carry out any work requested by the client?
If you are a genuine freelancer, contractor or consultant who is running your business from your account then IR35 will not affect you. Following best practices and keeping your books updated means you will have all the relevant information available should HMRC investigate you.
It is recommended that you seek expert advice as to whether you fall within the parameters of a contractor that should be ‘caught by IR35’ to ensure you have the correct information to hand. There are also several free online contractor calculators you can use for guidance.
If HMRC finds that you are inside IR35 there will be a demand made to retrospectively pay tax and national insurance that is owed and a possible penalty so it is very important to look into this and make sure you are following the requirements.
What’s the Difference Between a Plumber and a Commercial Heating Engineer?
Imagine you are in your home or workplace and suddenly you have a problem with your boiler, who do you call? Is a plumber best suited for this particular job or would a commercial heating engineer be more appropriate and qualified for the task at hand?
Like many people across the UK, you may think there isn’t too much of a difference and essentially, they are the same thing and tackle the same problems. However, this is not the case. There are clear distinctions between a commercial heating engineer and a plumber which will determine who is the best suited for this job. This post will highlight and outline the differences in profession and clarify how a commercial heating engineer differs from a plumber.
Commercial Heating Engineers
Commercial engineers have a wide knowledge of most household appliances however their specialism and qualifications will be focused on appliances that provide the home or property with heat. You should look to contact commercial heating engineers when gas or fuel reliant appliances require repair, servicing, installation or inspection. These appliances include gas cookers, boilers, central heating and many other household goods.
All qualified commercial heating engineers should be registered and fully certified on the gas safe register to ensure that you are getting the very best quality of service. Make sure you check they have their gas safe card and check the details to make sure that the commercial heating engineer is qualified to perform the job at hand.
How Plumbers Differ From Commercial Heating Engineers
Plumbers differ from commercial heating engineers in more way than most people realise. Plumber date back to Roman times and have been an ever-present service in very high demand. There work in the past would consist of lead piping work but as times move on the plumbing systems in commercial and domestic properties have also. Plumbers now concentrate on working with both dry and wet piping, if something springs a leak a plumber will be the ideal person to call for an efficient and effective service.
A shared services function is the consolidation of business operations within an organisation. There are 2 main arguments for using a shared service model: the first is reducing resource will reduce cost and the second is standardising everything makes it more efficient. The model helps companies to save money and makes business processes and overall activity more effective – through the consolidation of back-office operations. HR, IT and finance are the main areas that usually make up a shared service model, although many corporate functions can fall under these three headings.
Shared service centres are the central hub of an organisation, typically responsible for handling specific operational and administrative tasks. Businesses decide to use a shared services model so they can utilise their people, as well as the processes and technologies within the business. It is more efficient, and it cuts costs – as you are not paying for multiple managers, systems or buildings. There will be a head of shared services and a director of shared services to take responsibility for the shared service centre.
A large transformation within a business can include a move to shared services, as redundancies are made and there are changes in work practices and processes as part of the move, resulting in a transformation in the organisation.
Shared services and outsourcing are sometimes confused, but they are not the same. Outsourcing is when a third party is paid to look after an area which was previously done in house. Whereas a shared services function is centralising internal functions, which are all kept under the control of the company.
Leadership, planning and technology play a huge part in shared services. If you get them right, you can enjoy success in your shared service function. As with anything, there are obstacles that will challenge you, but if you have done the preparation correctly and have the right people involved, you will be able to overcome them.
When working at a desk you may feel like there isn’t enough room to be able to work on, space saving desks will prevent this problem from happening. Along with a well organised desk, a space-saving desk will allow you to have more room from retailers like Pure Office Solutions. A way to save you space is grouping all the items together that you feel are most valuable to in your working environment and place them relatively close. The key step to having tidy desk is to keep things you use on a regular basis in arms reach including pens, notepads etc. other items that you tend to use on a weekly basis can be kept in a draw on your desk or even on your desk but still so you are able to reach them. If your desk is smaller and there is no way of placing items around your workspace use facilities around you to store your items. If your work environment contains using a lot of folders containing key information why not store all this information on your desktop or pc. Saving desks are a very up to date version of a normal desk, however, variables that have been added to a saving desk will allow you to have more room. Many people will a standard desk will have trouble finding places to store the items they need to work with, the back of your computer monitor can be a good spot for hidden storage.
Ways to hide your storage
A back of a monitor will allow you to attach pens, external hard drives and index cards this will save you space! If your desk has been designed to allow you to pull a draw out underneath use this to store your keyboard this will allow you more room on the top of your desk. If there are a lot of wires around where you are working try to use pegs. This will hold all your wires into one, clutter that is caused from cables can look messy by using binder clips can be insanely useful allow you to choose which wire you want to put the clip. Wires that find are not always being used so any spare wire that you notice don’t go anywhere be ensured to remove them.