If you are employing crew direclty or through a crew company for your event and are concerned about the liabilities that HMRC’s IR35 could have on your company, you can rest assured that at The Production House all our crew are employees of the company NOT freelance/soletraders. Which means there cannot be any liability for end clients regarding IR35.
IR35 rules:
(taken from HMRC website: www.gov.uk/guidance/understanding-off-payroll-working-ir35)
The off-payroll working rules can apply if a worker/contractor provides their services through their own limited company or another type of intermediary (crew company) to the client.
The rules make sure that workers, who would have been an employee if they were providing their services directly to the client, pay broadly the same Income Tax and National Insurance contributions as employees. These rules known as ‘IR35’.
The client is the organisation who is or will be receiving the services of a worker/contractor. They may also be known as the
If the rules apply, Income Tax and employee National Insurance contributions must be deducted from fees and paid to HMRC. In addition, employer National Insurance contributions must be paid to HMRC by the engager, hirer or end client who pays the worker’s intermediary.
An individual’s employment status for tax determines the taxes the worker and client, or the person paying the worker’s intermediary need to pay, depending on whether a worker is employed or self-employed.
When the rules apply
The rules apply if a worker/contractor provides their services to a client through an intermediary, but would be classed as an employee if they were contracted directly.
A contract for the purpose of the off-payroll working rules is a written, verbal or implied agreement between parties.
The off-payroll working rules apply on a contract-by-contract basis. A worker/contractor may have some contracts which fall within the off-payroll working rules and some which do not.
