As of April 2021, the responsibility for determining workers’ employment status will fall with the client (i.e. agency) rather than the worker themselves. This change in IR35 legislation applies to all large, medium or private sector companies and agencies, and is called ‘off-payroll working’. It’s important to note however, that IR35 status tests will remain the same.
IR35 is a legislation relevant to limited company contractors. It’s important to make sure that if you are working ‘inside the scope of IR35’ you are paying an employed level of tax and national insurance, as you would if you were an employee of a client.
It’s imperative to work completely within the remit of tax rules and legislation, so contractors must take the time and effort to ensure that they are, as it is their responsibility as a contractor.
If you need help switching your temporary workforce contact our friendly, knowledgeable staff today to discuss your IR35 needs at email@example.com
On 1st March 2021 new rules will be introduced that will change how you account for VAT if you are in the Construction Industry Scheme (CIS) and are VAT registered. The new rules can be a little difficult to understand so in this blog, we have put together a handy guide to help explain the VAT Domestic Reverse charge, the reason for this change and what this means for you.
What is the VAT Domestic Reverse Charge?
The reverse charge is a way to account for VAT, whereby the end customer accounts for VAT on specified services, and the supplier of the construction or building services does not. This means the customer receiving these services has to pay the VAT directly to HMRC instead of the supplier. This shift in responsibility will only affect businesses within the supply chain that provide CIS services.
Why have they made this change?
HMRC announced the introduction of the VAT Domestic Reverse Charge in 2017, in an aim to reduce a type of VAT Fraud commonly seen in construction supply chains, referred to as ‘missing trader’ fraud. This is when inactive companies set up to steal VAT whilst working alongside legitimate businesses. It was initially due to come into play in October 2018 but was pushed back twice due to Brexit and the unprecedented Coronavirus pandemic.
How does this affect me?
It really depends on your position in the supply chain. Employment Business, Intermediaries and other business that provide support or services to the CIS industry are not subject to this change. This is good news if this is you, however, it’s important to be aware that there may still be an impact to the supply chain that in turn could affect you.
The VAT Domestic Reverse Charge will apply:
If the supply of services falls within the scope of CIS, and
The services are NOT supplied directly to an end customer, and
The services supplied are listed within the ‘specified services’ in article 5, and NOT listed within article 6, of the Statutory Instrument for VAT Reverse Charge for Building and Construction Services.
It’s also worth noting that the charge can only affect the specified services, between VAT registered companies and there cannot be a connection between said companies, such as being within the same commercial group. Further to this, only the standard rate or reduced rate supplies will be affected.
We have included a handy flowchart below to help you work out if you should apply the reverse charge or whether normal VAT rules apply.
Need more information? The Azure Global team are here and happy to help if you believe that the new reverse charge VAT rules apply to your business. Contact our friendly, knowledgeable staff today to discuss what we can do for you.
Dragon Perks is an online benefits portal which gives you access to discounts and cash back rewards at over 2000 major retailers, including Nike, Asda, Ikea and many more. These benefits are available for free to contractors, agency clients and all agency staff. At Azure Global, our clients are more than just clients and benefits such as Dragon Perks are all part of our bespoke and personal service, which we pride ourselves upon.
You can order vouchers from the extensive variety of retailers and receive up to 10% instant cashback. Alternatively, reloadable cards are available for a number of stores. Simply load them up and get spending.
Some of the many other benefits that are available to you as a member of Dragon Perks include special rate cinema tickets for you and your whole family, as well as our Wellbeing Area which encourages you to take the time to improve your physical, emotional and financial wellbeing by utilising the virtual gym, free eye tests, a retirement planning service and a legal helpline.
Dragon Perks is not only open to all contractors paid by Azure Global, its available to the agency teams we partner with as well. Contact us at firstname.lastname@example.org to find out how to register you agency team.
Finally, if you’re feeling lucky you could try your hand at the Dragon Perks Lotto or enter one of the exclusive competitions that are run in collaboration a variety of major retailers to be in with the chance to win gift cards to spend in store.
Professional Passport is the largest independent assessor of payroll solution compliance in the UK. They work with all areas of the contractor industry from contractors themselves through to accountancy and umbrella companies.
They are a completely independent compliance organisation who don’t have any founders, shareholders or investors and they’re not involved with any of the agencies, clients or payroll providers they accredit. This means that they are able to provide completely unbiased service reviews and independent compliance checks.
They continually monitor HMRC legislation to ensure that they are keeping their compliance review standards as up to date as possible so to make sure that their members are maintaining the highest of standards.
Professional Passport operates on a very strict Code of Conduct and Guiding Principles, that all the accredited members must abide by. As such, any umbrella or CIS solution provider has to be audited in depth before they can become accredited. After that, members face yearly audits to ensure that they remain committed to the most rigorous standards of compliance.
As an accredited member of Professional Passport, we have access to fully audited and approved supplier listings and the ability to access Professional Passport’s IR35 assessment service. We also have access to an abundance of information on best practice in relation to changing legislation, agency worker regulations, IR35 and much more.
As such, our Professional Passport accreditation acts as an unquestionable statement of compliance which provides the reassurance our clients need that Azure is amongst the best of the best. If you’re looking for a first-class payroll provider, contact us at
Chris has worked for some of the biggest names in the industry in his 17 years in the payroll sector. He is widely respected in the industry, working in partnership with agencies and helping them with everything from day-to-day queries to legislation changes and everything in between.
Chris joined Azure Global in November 2019 to help grow our UK business and within his first month, he secured a deal that would transform the business from a UK-only payroll company to an international HR Solutions provider.
Azure Global now has projects in Canada, Poland, Czech Republic, UAE, Ireland as well as the UK and the US. Chris has found that many agencies also have overseas interests and are keen to partner with a company that can operate compliantly in the UK and also abroad.
Outside work, Chris was a professional goalkeeper for 17 years, playing for Raith Rovers, Stenhousemuir, Albion Rovers and Stranraer. When he retired, he started up his own kids’ goalkeeping school and went into Clyde FC as their Goalkeeper Coach. Chris has a wife Lindsey and three kids Chloe, Lola and Ayden that all keep him on his toes.