With the private sector off-payroll changes set to go ahead in April 2020, some ‘outside IR35’ contractors may be forced to work ‘inside IR35’ if their clients are reluctant to take on the potential risks of making incorrect employment status decisions – at least for the time being.
IR35
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.
Private sector IR35 changes from April 2020
So-called 'off payroll' changes to the IR35 rules were made to public sector organisations from April 2017, and will also hit private sector businesses from April 2020, following an announcement in Budget 2018. These new rules mean that clients (not contractors themselves) will be responsible for determining the employment status of contractors.
A consultation on how the private sector changes will be rolled out was published on 5th March 2019 - read our summary here.
- April 2020 Private sector IR35 reform - what happens now?
- What clients can do to prepare in advance of April 2020.
- What contractors can do to mitigate against the IR35 changes
- IR35 off-payroll changes - our essential FAQs
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 cover.
Essential IR35 Email Bulletin Service
- Make sure you subscribe to our newsletter for the very latest on the IR35 private sector changes - subscribe here.
‘IR35 review’ announced, but April 2020 off-payroll still going ahead
The Treasury has announced a review into the ‘off payroll’ (IR35) rules, seemingly aimed at making the private sector rollout as smooth as possible, rather than as a precursor to making much-needed changes to the underlying legislation.
IR35 private sector changes – Essential FAQs
The April 2020 off-payroll changes to the private sector represent a massive challenge to the contracting industry. Here we have included some of the most common FAQs we’ve been asked about the IR35 reforms.
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.
IR35 – are you in business on your own account?
To ensure that any contracts you undertake are not caught by 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’?
April 2020 private sector IR35 changes – what happens now?
The IR35 ‘off-payroll’ rules will be extended to the private sector from April 2020 onwards, directly affecting a large number of contractors. What exactly does this mean, and what can contractors and clients do to prepare in advance?
IR35 reform – has your client stopped hiring limited company contractors?
A number of high profile clients will stop engaging limited company contractors in 2020 due to the private sector off-payroll changes. What should you do if you are affected? We ask a well-known IR35 expert.
IR35 contract template resources for contractors
To protect yourself against IR35, you need to be sure that the wording of your contracts (and the way you actually carry out your contract work for the client) show that you are genuinely ‘self employed’. Here we show where you can download a sample contract template.
What happens when you fact check HMRC’s IR35 off-payroll claims?
This week, HMRC has issued a new ‘issue briefing’ on the forthcoming off-payroll (IR35) changes. The aim of the publication is to ‘help organisations prepare’. With the help of an industry expert, we do some fact-checking on the statements and claims made by the taxman.
IR35 off-payroll – what constitutes ‘reasonable care’?
When end-clients determine the IR35 status of contractors in the private sector from April 2020 onwards, they are tasked with taking ‘reasonable care’ when making employment status decisions.
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