IR35 Rules

With IR35 reforms being applied to private sector organisations from 6th April 2021, here we look at ways clients/engagers can prepare their businesses in advance of the implementation date.

With private sector IR35 reform looming, we asked a leading IR35 advisory firm what practical steps professional contractors can take now to prepare in advance for the changes.

If you work on an ‘inside IR35’ contract post-April 2021, then your fee-payer (agency or client) will be responsible for deducting taxes from your contract income, but exactly how is this income taxed before your limited company receives funds?

The Off-Payroll private sector rollout has been deferred by a year, until April 2021. Steve Barclay MP made the announcement in the House of Commons tonight.

With changes to HMRC’s off-payroll tax rules coming into force in less than a month, many businesses are still struggling to understand their exposure to the new legislation.

The Government has published the results of its post-election IR35 review. As expected, nothing of any substance has been announced, although HMRC has promised to take a ‘soft’ approach to compliance during the tax year following the April 2020 off-payroll private sector changes.

The IR35 ‘off-payroll’ rules will be extended to the private sector on 6th April 2021, directly affecting a large number of contractors. What exactly does this mean, and what should contractors and clients do to comply with the new legislation?

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.

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.