Hudson Freelance has partnered with IPSE to help protect self-employed consultants and their clients against the financial and administrative fallout from new tax legislation known as IR35.
From April 2020, medium and large-sized clients will be responsible for deciding the employment status of individual suppliers and liable for any tax and national insurance contributions.
HMRC has estimated contractors have been wrongly classifying themselves as outside tax regulations in around 90 per cent of cases. It has suggested the new rules could raise up to £1.2bn a year by 2023.
Hudson Freelance ensures that self-employed consultants can continue to contract their services to clients without any risk that HMRC will overturn their status and recalculate turnover as employed income.
The company is part of the family-owned Hudson Contract group, which originated the market for secure self-employment in 1996 and has engaged more than 145,000 freelancers without a single instance of employment status reclassification.
Its model was upheld in a landmark employment tribunal, reported in The Times, which found its legal contract preserved an individual’s flexibility and autonomy and was incapable of conferring employment or worker status.
Ian Anfield, managing director Hudson Freelance, said: “HMRC predicts most firms that use freelance contractors will have to put a large proportion of them on the payroll from April.
“The cost of non-compliance could sink a business and destroy opportunities for freelancers, whose skills and flexibility are vital for a healthy and productive economy.
“Our partnership with IPSE provides a tried-and-tested alternative for firms considering risky and costly blanket approaches to their freelancers.
“It also gives peace of mind to freelancers who can focus on doing what they do best – supplying specialist skills to help clients grow and prosper.”
Hudson Freelance has designed IR35 compliant contracts supported by robust auditing so that freelancers and their clients can go about their business without worrying about status.
In the event of challenge from HMRC, Hudson Freelance provides and pays for the legal team to argue the case and is liable for fines and awards.
Andy Chamberlain, deputy director of policy and external affairs at IPSE, said: “We are delighted to be partnering with Hudson Freelance.
“The company’s services can safely protect legitimate freelancers and their clients against the worst effects of IR35, an unnecessary and damaging piece of legislation.”