Tax specialists are warning hauliers and driver agencies to check they are compliant with IR35 tax rules on hiring limited company drivers, which were introduced in April last year, writes Carol Millett.
The warning comes as HMRC prepares to end the 12-month “soft landing” period next month and start investigating hauliers and agencies that may have transgressed the new IR35 regulations.
Under the changes, large and medium-sized haulage companies – with net turnover of above £10m, or 50 or more staff – can no longer hire limited company drivers. Instead, drivers need to be employed on PAYE, either by the haulier, the agency or via an umbrella company.
Organisations are also required to check if a worker falls inside or outside the scope of IR35 by using the HMRC Check Employment Status for Tax (CEST) digital tool.
See the next issue of Transport News for the exclusive story on its investigation into the use of limited company drivers one year after the IR35 regulations came into force.
