You are here
Key legislation affecting interims
An interim professional who operates through a limited company needs to take into consideration legislation that is relevant to how they operate.
Here’s a brief look at each of these areas.
Intermediaries legislation (IR35)
This was introduced in April 2000 and is designed to help eradicate the avoidance of tax and national insurance payments. These rules aim to discourage using the PSC (personal service company) status simply to achieve a more favourable tax and national insurance regime. It may be best to seek expert guidance when it comes to IR35 legislation, as the rules that apply to you will be dependent on the type of work you undertake. Detailed information on the IR35 can be found on the HMRC website.
Money laundering regulations (MLR)
This came into effect in 2007 and requires certain companies and service providers to register with HMRC or with their own professional body for supervision. Some interim professionals may need to register before carrying out their particular business activities. Again, the HMRC can provide you with more detailed information here.
Once your annual turnover has reached a certain amount, your limited company will need to be registered for VAT. The flat rate scheme is normally recommended for interim managers and consultants as it is designed to simplify the way small businesses deal with their tax commitments. Interim Hub offers some helpful advice on VAT for interims.
Professional indemnity insurance
As an interim manager, you may need to have a professional indemnity policy in place. This can help to protect you financially if you face a negligence claim as a result of the advice you have provided. The amount of cover needed will depend on the type of work you undertake. It’s important to put any necessary insurance in place before you start your assignment.
Agency Workers Regulations
This shouldn’t affect interims working through their own limited company, but it is likely to impact upon workers using PAYE umbrella companies. Read more on the ins and outs here: https://www.michaelpage.co.uk/content/18084/awr.html.
Why not browse Michael Page' temporary jobs today.