IR35 in the Public Sector How could this affect your business? Introduction IR35 is a piece of legislation that allows HMRC to collect additional payment where a contractor is an employee in all but name. If a contractor is operating through an intermediary, such as a limited company, and but for that intermediary they would be an employee of their client, IR35 applies. New rules for IR35 will apply from the 1st of April 2020 in the Private Sector as they have been applied in the Public Sector for the last two years. Each business needs to assess the Risk and implications of these new rules and make the necessary changes to procedures before early April 2020. Who will be affected in the Private Sector? Medium and Large Companies will be the initial target of the IR35 rules and they will follow the rules that now apply in the Public Sector. Small businesses do not have a definition for IR35 but the definition will probably follow the criteria in Companies Act 2006. How … [Read more...]
How to identify and manage risks in your business
When you start a business you need to be aware of the risks you are taking. Government statistics show that 97% of new start-up businesses fail within 3 years. To prevent this from happening to your business you need to understand RISK. By understanding Risk you can apply yourself to the areas of the business which are really important for the survival of the business. Risk Management is a process of analysing what can go wrong with the business and what can be done to alleviate the problem in a cost-effective manner. Entrepreneurs need to be familiar with the likely occurrence of a risk and the consequences of such risks if they happen. Please see the diagram below: Quadrant 1 risks have the least impact and the least consequences to the business, whereas Quadrant 4 risks have the most damaging consequences and the highest likelihood of occurring. Therefore all risks need to be mitigated if the business is to be successful. Let’s discuss the four … [Read more...]
