I have several personal service company clients who are caught by IR35 under the proposed off-payroll working rules. However, a couple of them are sole directors/shareholders and are over the age for paying National Insurance contributions (NICs). Does the client take this into account when calculating the NICs/tax to be deducted as if they were a ‘normal’ employee?
Arthur Weller replies:
Firstly, see the government’s guidance (click here). Due to coronavirus the planned changes to IR35 have been postponed until April 2021. Secondly, the NICs obligations are the same as for a regular worker, so this will make a difference to employee contributions.