Recently introduced IR35 reform in the private sector presented a host of challenges to contractors, along with the businesses that place and engage them. Here we have included some of the most common FAQs we get asked about these changes, which were rolled out on 6th April 2021.
IR35 Rules
The Intermediaries Legislation was introduced in 2000 to tackle 'disguised employment', where an individual uses a limited company to carry out professional services, but works in a manner more like an 'employee'. Your take home pay will be significantly lower if your contracts fall within its scope.
Off-Payroll Rules
The 'off-payroll' addition to the existing IR35 rules was rolled out across the public sector in April 2017. Since April 2021 the rules also apply to the majority of private sector businesses.
The 'Off Payroll' rules mean that clients (not contractors) are responsible for determining the employment status of contractors. Prior to this, workers themselves were responsible for this determination.
Here are some of our most-read articles:
- April 2021 Private sector IR35 reform - what happens now?
- What clients can do to prepare in advance of April 2021.
- What contractors can do to mitigate against the IR35 changes
- IR35 off-payroll changes - our essential FAQs
- IR35 Calculator - how much will it cost you if you are caught?
Get started with our IR35 guides
- Start off with our overview of IR35 for a concise guide to the legislation.
- Expert FAQ - Are you 'inside' or 'outside' IR35?
- Try our IR35 tax calculator to find out the financial cost if you are caught.
- Why you should consider taking out IR35 insurance.
IR35 – are you in business on your own account?
To ensure that any contracts you undertake are not deemed inside IR35, you need to be able to demonstrate that you are not a disguised employee, but truly working in the manner of a small business owner. In other words, can you show that you are ‘in business on your own account’?
What happens if you’re selected for an IR35 enquiry?
There is a huge amount of information available about IR35 and how to protect yourself. But what happens if you are actually selected for an investigation in the post-IR35 reform world? How does an IR35 enquiry work now and what should you expect if HMRC contacts you regarding IR35 compliance?
The importance of professional IR35 contract reviews
For a relatively small outlay, a professional contract review service will analyse your contracts to ensure that you comply with IR35 – both in terms of your contract wording, but also the ‘working practices’ you undertake at your client site.
Working inside and outside IR35 – what are your options?
With more than six months since the private sector off-payroll (IR35) reforms were implemented, we look at the impact on contractors and how they can work both inside and outside IR35 compliantly via a dual solution.
IR35 ‘blanket ban’ clients to lose out as demand for contractors increases
As the economy recovers and the demand for contractors continues to rise, a legal expert explains why businesses that are unable or unwilling to engage workers on an ‘outside’ IR35 basis will lose out.
Does the IR35 legislation apply to sole traders?
With the arrival of private sector off-payroll rules from 6th April 2021, is working as a sole trader a smart way to ensure your contract work falls outside IR35?
Off-payroll (IR35) – what is a Status Determination Statement (SDS)?
Under the off-payroll rules, from April 2021, private sector clients are responsible for determining a contractor’s IR35 status. The decision must be contained within a Status Determination Statement (SDS), alongside the client’s reasoning.
How should a contractor challenge an IR35 determination?
Many contractors are wondering how they can mount an IR35 challenge post-April 2021. Is there any way to successfully appeal an inaccurate or even non compliant IR35 determination?
Are consultancy arrangements a solution to the Off-Payroll / IR35 rules?
The forthcoming (April 2021) off-payroll rules in the private sector have led to much discussion about the use of consultancies as a potential workaround.
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