GSK Contractors Receive Letters from HMRC
Almost 1500 contractors whose Personal Service Companies (PSC) were engaged in contracts with the pharmaceutical giant GlaxoSmithKline (GSK) during the last tax year were the recipients of letters from HM Revenue & Customs, requesting confirmation of their IR35 status.
Off-payroll status confirmation was requested via letters over the August bank holiday weekend, with HMRC stating they believe each of the recipients who engaged in contracts with the pharmaceutical company during the 2018/19 tax year operating through their PSC were inside IR35 – and subject to off-payroll working rules.
The letters saw contractors being asked to confirm if they were indeed operating outside IR35, or to reclassify their status as inside IR35.
The effects of reclassification include a deemed payment to HMRC by no later than the 22nd of the next tax month – the amount of which will be defined by calculating Pay As You Earn (PAYE) and National Insurance Contributions (NICs).
For those who have received a letter, HMRC has specified a relatively short time frame in which to respond (stated confirmation of status has been requested by the 19th September).
If you have received a letter there is no need for concern. Our in-house team of IR35 specialists can assess the commercial agreement between your limited company and GSK, helping you determine if a reclassification is necessary, or if you can indeed confirm your position outside IR35.
Get in touch or contact your accountant for expert IR35 help.
Published on: 29 August 2019 - By: First Freelance