The draft legislation which will make the off-payroll private sector IR35 rules law in April 2020 has been published today. With few amendments made, it disregards the concerns expressed by respondents to the recent consultation.
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 2021
The 'off-payroll' addition to the existing IR35 rules was rolled out across the publc sector in April 2017. The rules will also hit private sector businesses from April 2021. The planned rollout was deferred from April 2020 due to the COVID-19 crisis. These new rules mean that clients (not contractors themselves) will be responsible for determining the employment status of contractors.
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
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.
Essential IR35 Newsletter
- Make sure you subscribe to our newsletter for the very latest on the IR35 private sector changes - subscribe here.
When the ‘off-payroll’ IR35 rules are extended to the private sector in April 2020, ‘small companies’ will be excluded as things currently stand. However, the exclusion itself may cause more complications for clients to deal with.
** BREAKING NEWS 17th March 2020 – The Off-Payroll (IR35) private sector changes have been deferred until April 2021 – read more here. ** Many major tax and business groups have called for the IR35 off-payroll private sector reforms to be delayed until at least April 2021, as businesses simply won’t be ready to cope […]
Nothing makes critics of the IR35 ‘off-payroll’ legislation (and there are many) more irate than the mention of CEST – the official online tool which is meant to help determine employment status.
The Government has launched a new consultation on the ‘off-payroll’ private sector IR35 extension. Here we look at what this exercise involves, and what the Treasury hopes to achieve from it.
Although you should expect all contractor-focused professional accountancy firms to be highly IR35-literate, some still like to advertise themselves as ‘IR35 accountants’, which is a misleading term.
The main factors used to establish whether or not an individual’s contract is caught by IR35 – the most important being Control, Substitution and Mutuality of Obligation. How to ensure that you’re not caught.
There is a common misconception that contract duration automatically has a bearing on IR35 status. Here, Martyn Valentine looks at why other factors are more likely to be significant than contract length in determining employment status.
Although a combination of factors will determine whether or not a contractor is caught by IR35, some factors carry more weight than others. Here, Martyn Valentine looks at the vital role the right to substitution plays in determining IR35 status.
The next Budget will be delivered on Monday 29th October. The main focus of the contracting community, of course, will be on whether or not the ‘off payroll’ IR35 rules will be extended to the private sector