If an assignment is determined to be inside IR35, PSC contractors cannot be paid on a gross basis via their company. However, there are still alternative ways to take on the role, and contractors are free to choose the option that best suits their circumstances
So, what other options are available for taking on the assignment?
There are two main alternatives:
1. Change your engagement model
You may choose to take on the assignment using a different operating model, such as:
Working via a YunoJuno preferred's umbrella company list.
Engaging as a sole trader (where appropriate). Sole Traders are subject to HMRC’s regulations and could be subject to SDC rules (supervision, direction and control)
Please note. the original offer will have been made to your PSC, so changing your engagement type will require a new contract. Additional compliance checks may be required depending on the model you choose
2. Challenge the IR35 determination
Contractors have the right to challenge the client’s IR35 determination through a formal status disagreement process, supporting accurate and compliant classification